Microsoft has reportedly cancelled its plans for new data centers, alerting the market to potential overestimations in data center growth. Analyst Michael Elias from TD Cowen highlighted that Microsoft has withdrawn from multiple high-capacity lease agreements and canceled several commitments, suggesting a possible oversupply situation. While the industry is preparing for significant growth, this development signals a necessary reevaluation of previous forecasts. Industry experts believe this type of adjustment is common among major tech firms, who periodically refine their strategies in response to market dynamics.
"This is not new and definitely not the biggest one we've had in the last three years," said an unidentified data center executive, indicating industry trends.
Michael Elias, a TD Cowen analyst, noted Microsoft's cancellation of 'multiple +100 megawatt deals' raising concerns over a possible data center growth bubble.
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