Microsoft (MSFT, Financial) responded Monday to a report from TD Cowen, stating that its $80 billion planned infrastructure investment remains "on track" despite claims that the company may have canceled some data center leases.
The company added that while strategic adjustments may occur, it will continue strong growth in all regions and remains committed to its $80 billion infrastructure spending plan for this fiscal year. TD Cowen's research, published Friday, suggested that Microsoft may have canceled data center leases totaling a “couple hundred” megawatts with at least two private data center operators.
The report also noted that Microsoft has scaled back the conversion of statement of qualifications to leases and shifted a considerable portion of international spending to the U.S., potentially indicating an oversupply in infrastructure. Despite the concerns, Microsoft maintains that growth and expansion remain a priority as it continues scaling its cloud and AI capabilities.
