**Microsoft Scales Back Data Center Developments Amid Oversupply Concerns**
Microsoft has significantly reduced its data center development pipeline in both the U.S. and Europe, shelving projects with a combined capacity of two gigawatts over the past six months.
The decision follows speculation that the company may be facing an oversupply situation after its aggressive investments in artificial intelligence (AI) and cloud computing infrastructure. The Redmond, Washington-based tech giant has reportedly slowed or paused expansion across multiple regions, including Indonesia, Australia, the United Kingdom, and U.S. states such as Illinois, North Dakota, and Wisconsin.
According to a recent Bloomberg report, Microsoft has also halted negotiations for leasing a potential data center site between London and Cambridge in the U.K., which would have hosted Nvidia’s high-performance AI chips. Additionally, the company stepped away from plans for another site in the Chicago area.
“As AI demand continues to grow, and our data center presence continues to expand, the changes we have made demonstrate the flexibility of our strategy,” a Microsoft spokesperson said.
Microsoft’s recent shift reflects a broader trend among tech companies reevaluating capacity and operational needs in a rapidly evolving AI-driven landscape.
