Microsoft Scales Back Global Data Center Plans Amid Strategic Reassessment

The company delays or cancels projects in multiple countries while maintaining its $80 billion AI infrastructure investment for fiscal year 2025.

Microsoft has delayed or canceled data center projects in Indonesia, the UK, Australia, and several US states, including Illinois, North Dakota, and Wisconsin.
The company cites flexible capacity planning and construction challenges, such as power and material shortages, as key reasons for the adjustments.
Economic pressures, including tariffs introduced by the Trump administration, are raising costs and adding uncertainty to large-scale infrastructure investments.
Investor concerns over the sustainability of AI-related spending and potential oversupply have added scrutiny to Microsoft's ambitious plans.
Despite these changes, Microsoft reaffirms its commitment to an $80 billion investment in AI-enabled data centers for fiscal year 2025.