Bloomberg, citing people familiar with the plans, reported that Microsoft aims to grow global data-center capacity from about 12 GW to over 38 GW by 2032; Microsoft has not confirmed the target. AI-specific capacity is expected to account for about one-third of the total.
About 2 GW of current capacity is dedicated to AI-specific chips. Azure and other cloud services revenue grew 43% year over year in fiscal Q4, and Microsoft said capacity constraints limited its ability to meet some demand. Commercial remaining performance obligations, a measure of contracted business, rose 84% year over year to $678 billion; Microsoft expects to recognize about 30% of that amount as revenue in the next 12 months.
Microsoft expects more than $50 billion in capital expenditures in fiscal Q1 2027 and about $175 billion during calendar 2026 under a broader measure that includes finance leases. The plan also faces power and regulatory hurdles: Texas temporarily halted approvals for new data-center grid connections while reviewing electricity and water demand, and New York imposed a moratorium on large new data centers. Microsoft signed a 20-year agreement with Constellation Energy linked to the restart of the 835-megawatt Three Mile Island Unit 1.
