Microsoft (Msft) Actions fell slightly on Monday following an analyst report according to which the company canceled certain leases from the American data center, potentially signaling an excess offer of the IA infrastructure.
Friday, TD Cowen analysts (TD) said in a note that the technology giant had canceled leases of value “of a few hundred megawatts”, or about two capacity data centers. In some cases, Microsoft said that “the delays in the installations / powers” were a reason for the termination, analysts said in the note, adding that Meta (Meta) had previously used a similar justification to cancel the leases in the data center.
TD Cowen also noted that Microsoft “has brought back” the converting converting of qualification, agreements which generally turn into traditional leases. Analysts expressed their uncertainty as to whether Microsoft’s actions represent a temporary delay or complete termination of the agreements.
The company is potentially “in an excess assistance position”, the note adding that Microsoft refused other data center and land acquisition agreements. TD Cowen analysts wrote that this indicated “the loss of a major demand signal to which Microsoft was responding and that we thought that change in their appetite for capacity is linked to Openai.”
The company’s shares have dropped by around 1.2% at noon and have dropped by more than 4% so far this year.
“Thanks to the important investments that we have made so far, we are well placed to meet our current and growing demand for customers,” said a Microsoft spokesperson in a shared press release with Quartz. “Only last year, we added more capacity than any previous year in history. Although we can rhythm strategically or adjust our infrastructure in certain regions, we will continue to grow strongly in all regions. This allows us to invest and allocate resources to growth areas for our future. »»
The spokesperson added that Microsoft’s plan to spend more than $ 80 billion on AI infrastructure this financial year is still on the right track.
Last week, the information said that Optai told investors that he expects Stargate project – that he associated with SoftBank and Oracle (Orcl) on Provide three -quarters of the computer power it needs For its artificial intelligence models by the end of the decade – a microsoft shift.
Bank of America (Bin) Analysts said in a note on Monday that Microsoft “strongly refuting” the changes in its data center strategy.
“They [Microsoft] Make investments based on a 10 -year view of demand for cloud and AI demand, “said Bank of America analysts. “They modify their top and bottom forecasts in extension on a regional basis depending on the regions must have priority.”
