Microsoft CEO Satya Nadella spoke on January 22, 2025 at CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland.
Gerry Miller | CNBC
Microsoft It will stick to its plan to allocate more than $80 billion in cash to capital expenditures after an analyst note Friday claimed the company had cancelled a data center lease.
However, Microsoft acknowledges that “there can be strategically paced in certain areas or adapted our infrastructure.”
Microsoft shares fell 1.9% on Friday, with the Dow Jones industrial average suffering its highest sell-off of the year. Analysts at TD Cowen Distributed a reportciting “channel check”, indicating that Microsoft has cancelled the lease using “at least two private data center operators.”
In early January, Microsoft announces It aims to spend more than $80 billion on data centers capable of handling AI workloads this fiscal year. Microsoft’s fiscal year ends in June.
“We plan to spend more than 80B of infrastructure on infrastructure as we continue to grow at a record rate to meet customer needs, and this FY is still on track,” a Microsoft spokesperson said in an emailed statement on Monday.
TD Cowen analysts did not immediately respond to requests for comment.
Microsoft’s shares fell 1% on Monday. Stocks of data center companies Digital Real Estate Trust It fell 2.7%, while Vistra, which powers data centers, fell nearly 5%.
In addition to building your own data center and allowing customers to utilize it through Azure Public Cloud, Microsoft also CoreWeave and other providers. The company is also a major supporter of OpenAI, which is part of the $500 billion Stargate Data Center program, as well as Oracle and Softbank, Announce last month.
“As we have made up for a lot of investments so far, we are in a good state of good in meeting current and growing customer needs,” a Microsoft spokesperson wrote. “Last year alone, we have increased our capabilities in any year in history,” a Microsoft spokesperson wrote. . Although we can make strategic pace or adjust infrastructure in certain regions, we will continue to grow in all regions. This allows us to invest and allocate resources to the growth sector for our future.”
– CNBC’s Teddy Farkas and John Melloy contributed to the report.
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