Microsoft keeps $80B AI plan, may 'pace or adjust' buildout

Microsoft said on Monday it remains on track to spend more than $80 billion on AI infrastructure this fiscal year, while telling CNBC that it "may strategically pace or adjust our infrastructure in some areas." The clarification followed an analyst note on Friday from TD Cowen claiming Microsoft had canceled U.S. data center leases with at least two private operators.

"Our plans to spend over $80B on infrastructure this FY remains on track as we continue to grow at a record pace to meet customer demand," a Microsoft spokesperson said. The spokesperson added that the company would "continue to grow strongly in all regions" even while pacing or adjusting in specific areas.

The TD Cowen note, which moved the story, reported that Microsoft had pulled back on converting statements of qualification into leases and reallocated a considerable portion of its international spend to the U.S. The analysts put the canceled capacity at a couple of hundred megawatts and said Microsoft had cited facility and power delays as the justification for the terminations.

The spokesperson did not name the affected sites or operators, and Microsoft did not disclose whether the $80 billion figure is held by backfilling canceled leases with new U.S. capacity or by absorbing the cancellations inside the existing envelope.