Microsoft is canceling a significant number of data center leases in the United States, which may signal concerns about overbuilding AI computing capacity or a strategic shift toward optimizing existing resources, according to TD Cowen.
OpenAI’s largest backer has canceled data center leases totaling “a couple of hundred megawatts” of capacity, TD Cowen reported Friday, citing supply chain inquiries.
The brokerage also noted that Microsoft has halted conversions of statement of qualifications—agreements that typically lead to formal leases—a strategy previously used by Meta when reducing capital spending.