Microsoft Corp. has canceled some leases for US data center capacity, according to TD Cowen, raising broader concerns over whether it’s securing more AI computing capacity than it needs in the long term.

TD Cowen noticed Microsoft doing something strange on Friday. The Open AI partner and tech giant appeared to be cancelling data center leases. According to the market analysts, this is part of a wider pattern. TD Cowen said Microsoft had an “oversupply” problem. It’s another datapoint that points to Big Tech’s nervousness around its big bet on AI.

Despite a pledge made in January to spend $80 billion on AI data centers in FY 2025, a new report indicates Microsoft is already dropping some of its current data center leases.

TC Cowen report indicates firm has pulled back on ‘converting negotiated and signed’ docs that are precursors to data center leases.

It is being reported that Microsoft has recently canceled several data center leases in the U.S., prompting concerns about its long-term AI infrastructure strategy. According to TD Cowen, the tech giant voided agreements amounting to "a couple of hundred megawatts" of capacity, roughly equivalent to two large data centers.

A research note written by TD Cowen analysts says Microsoft has canceled leases in the U.S. with at least two private data-center operators totaling a couple hundred megawatts and also is not converting so-called statements of qualifications into leases.

TD Cowen analysts reported in a research note Friday that Microsoft had canceled leases with “at least two data private center operators” in the U.S., amounting to a few hundr

Meta Platforms is in discussions to construct a new data center campus for its artificial intelligence projects, with potential costs exceeding $200 billion, The Information reported on Tuesday, citing people familiar with the matter.

Microsoft is canceling some data center leases. But what, if anything, does that mean for the technology giant's billions planned for Racine County?