Microsoft suspends $1 billion data center project in the US

Microsoft is pausing several data center construction projects, including a $1 billion project in Ohio.

The decision suggests that demand for Artificial Intelligence (AI) technology, which has fueled a massive infrastructure expansion, may not be as high as expected.

The tech giant confirmed it has paused early-stage projects on rural properties in Licking County, Ohio.

Microsoft's cloud and AI services have grown more rapidly than expected in recent years, and to meet that demand, Microsoft has embarked on its largest infrastructure expansion ever, Noelle Walsh, president of Microsoft's cloud operations, said on LinkedIn.

However, Ms. Walsh also said that any large-scale project requires flexibility and adjustment to suit customer needs, so Microsoft is pausing some early-stage projects.

Microsoft did not specify which other projects were paused outside of Ohio, but in late December 2024, the company announced it was pausing the later phases of a major data center project in Wisconsin.

Earlier this year, analysts at securities firm TD Cowen said Microsoft was also scaling back its international data center expansion and canceling some U.S. data center leases from other companies.

Many analysts believe these changes are related to adjustments in the partnership between Microsoft and OpenAI, the company that developed ChatGPT.

Craig Ellis, director of research at B. Riley Securities, said OpenAI is focused on developing more advanced AI systems that require massive computing resources, while Microsoft doesn't seem to be going in that direction.

Microsoft is still investing heavily in its AI infrastructure. The company said it will spend more than $80 billion globally to expand its AI infrastructure in the current fiscal year (ending June 2025) and has doubled its data center capacity over the past three years.

Ms. Walsh affirmed that Microsoft will continue to grow strongly and invest in accordance with business priorities and customer needs.

However, the suspension of the project in Ohio still disappoints local authorities./.

(Vietnam+)

Source: https://www.vietnamplus.vn/microsoft-tam-dung-du-an-xay-trung-tam-du-lieu-tri-gia-1-ty-usd-tai-my-post1026930.vnp