A manager warned on Wednesday while Microsoft's profit call that customers could also be exposed to AI service disorders because demand exceeds the corporate's ability to bring data centers online.
The EPP and CFO of Microsoft, Amy Hood, shared in the course of the income for the corporate's third quarter of the corporate in 2025 that the corporate may very well be exposed to AI capability restrictions in June.
“We had hoped to be in balance until the tip of the fourth quarter, but we saw an increased demand that the district saw within the district,” said Hood. “So we’ll get a little bit short, a little bit tight after we leave the yr.”
The timing of Hood's statement is interesting, since Microsoft reports reported several data center rental contracts this yr.
In February, Investment Bank TD Cowen released a memo that Microsoft broke off several data center speech quarters that corresponded to a “couple hundred megawatts” or the equivalent of two data centers. In the 2 months since then there was several Report of additional data center -leasing cancellations.
According to Microsoft, these two instances should not necessarily connected. The The company repeated today The indisputable fact that it continues to be committed to investing 80 billion US dollars in data centers this yr – as was originally intended initially of this yr. Half of this number is for US-based data centers.
Hood also added that demand today and the demand won’t be the identical tomorrow.
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“Only one memory, these are very long preliminary decisions, from the country to expand.” So we’re continuously in a compensation position after we observe demand curves. “
Satya Nadella, CEO from Microsoft, said at the highest of the profit that the corporate opened data centers in 10 recent countries and 4 recent continents previously quarter.
