Microsoft Cancels Leases for AI Data Centers, Analyst Says

Microsoft Corp. has cancelled leases for US data center capacity, raising questions about its demand projections for AI computing. The implications hint at a possible oversupply in the data center market, with Microsoft reallocating investments and modifying its partnership with OpenAI.

• Microsoft voided leases equivalent to 2 data centers.
• The canceled capacity amounts to hundreds of megawatts.
• OpenAI may shift workloads to Oracle from Microsoft.
• Microsoft still plans to spend over $80 billion on AI.
• The lease cancellations may indicate market oversupply.