Microsoft Cancels Data Center Leases: Overcapacity in AI Computing?

Microsoft Corp. has canceled several US data center leases, according to TD Cowen, sparking concerns about potential overinvestment in AI computing capacity. The canceled leases represent “a couple of hundred megawatts” — roughly two data centers — and involved agreements with multiple private operators. This, along with a reduction in converting statements of qualifications to formal leases, suggests a potential recalibration of Microsoft's AI infrastructure strategy or an overestimation of long-term demand.