Microsoft is reportedly walking back some data center plans

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After a January announcement that it will spend on information middle development, Microsoft might already be adjusting its future plans. Sources informed that Microsoft has delayed or slowed information middle efforts in Indonesia, the UK, Australia, Illinois, North Dakota and Wisconsin. Among the instances meant withdrawing from negotiations, whereas others have concerned delays on deliberate development initiatives, in keeping with these insiders. These information facilities can be central to Microsoft’s efforts to develop extra capabilities round synthetic intelligence.

Regardless of the obvious shift in its strategy, a Microsoft rep informed Bloomberg that the corporate nonetheless plans to carry to its $80 billion spending funds on information facilities throughout its 2025 fiscal yr. Engadget has reached out for affirmation and can replace if we obtain remark from Microsoft. That was the determine specified by a blog post attributed to Vice-Chair and President Brad Smith. The submit, printed days earlier than President Trump’s inauguration, included some ingratiating language for the brand new administration. “The nation has a novel alternative to pursue this imaginative and prescient and construct on the foundational concepts set for AI coverage throughout President Trump’s first time period,” it reads. “At Microsoft, we’re excited to participate on this journey.”

Microsoft’s plans may have been influenced by looming tariffs, which had been threatened and have been lastly this week by President Trump. The commerce coverage is more likely to make giant infrastructure plans costlier and has already prompted uncertainties on Wall Road. It may very well be that the corporate will nonetheless spend within the ballpark of $80 billion however will be unable to finish as many places because it had beforehand calculated. Or it may very well be that within the months since presenting its forecast, Microsoft has already seen a discount in anticipated demand.

This text initially appeared on Engadget at https://www.engadget.com/ai/microsoft-is-reportedly-walking-back-some-data-center-plans-210406748.html?src=rss

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