Microsoft's CFO Amy Hood highlighted potential disruptions in AI services due to exceeding demand against the backdrop of insufficient data center capacity. She indicated that Microsoft could experience capacity constraints as soon as June 2025, which is unfortunate timing as the company has also cancelled several data center leases this year. Moreover, despite these cancellations, Microsoft remains dedicated to an $80 billion investment plan for data centers, particularly in the U.S., while acknowledging the long lead times involved in establishing new facilities.
Microsoft's Executive VP and CFO Amy Hood warned that demand for AI services may cause service disruptions as data centers are unable to keep up.
Hood emphasized that Microsoft is facing potential AI capacity constraints well before the end of fiscal 2025 due to increased demand exceeding available infrastructure.
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