Microsoft Cancels Data Center Leases, Raising AI Overcapacity Concerns

Microsoft has canceled some US data center leases, according to TD Cowen, sparking concerns about potential overinvestment in AI computing capacity. While Microsoft maintains its $80 billion infrastructure spending target for the fiscal year, it declined to comment on the lease cancellations. Analysts suggest this could be due to shifting workloads to Oracle, internal investment reallocation, or a more cautious outlook on AI demand. Despite this, other tech giants like Amazon, Google, and Meta continue massive AI infrastructure investments, highlighting the intense competition in the field.