strategy.”
As recently as February, Microsoft reiterated earlier plans to allocate more than $80 billion of its cash to capital expenditures in 2025, primarily AI data centers. As Bloomberg points out in its piece, it’s hard to know how much of the company’s recent pullback reflects its expectations of diminished demand versus temporary construction challenges, such as shortages of power and building materials.
Microsoft previously said that it would shift its data center expansion focus for 2025 from new construction to fitting existing facilities with servers and other computing equipment.
