Microsoft has been pulling back on data center projects around the world, prompting questions about the company’s expectations for future demand of cloud and AI services.
Bloomberg reports Microsoft, widely seen as a leader in commercializing AI services, has recently halted or delayed development of data center sites in several countries, including Indonesia, the UK, Australia, and the United States. This pullback has raised concerns among investors who closely track the company’s spending plans to gauge long-term customer demand for cloud and AI services.
While it is unclear whether the retrenchment reflects diminished demand expectations or temporary construction challenges, such as power and building material shortages, some investors have interpreted the signs as an indication that projected AI service purchases may not justify
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