An executive warned during Microsoft’s income on Wednesday that customers could cope with service interruptions as the request exceeds the company’s ability to bring online data centers.
Microsoft’s EVP and CFO Amy Hood said during the fiscal call of company 2025 of the third quarter profits that the company can face with its capacity restrictions since June.
“We had hoped to be in balance until the end of the Q4, but we saw an increased request, as you saw during the quarter,” Hood said. “So we’ll be a little short, a little tight when we get out of the year.”
Hood’s statement is interesting because Microsoft is reported to have canceled multiple data center rents this year.
In February, TD Cowen Investment Bank published a memorandum that Microsoft canceled multiple data center rents equating a “couple megawatt” or equivalent of two databases. In two months since that time, there have been numerous reports on the cancellations of additional rental lease.
Microsoft says these two cases are not necessarily related. The company reiterated today that it is still committed to investing $ 80 billion in databases this year – as it first split this year. Half of this figure is for US -based databases.
Hood also added that the request today and the request tomorrow are not the same thing.
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“Just one memory, these are very long decisions of lead time, from the ground to build, it can be, you know, sometimes leaders from five to seven years, two to three years,” Hood said. “So we are constantly in a balanced position as we look at the turns of demand.”
Microsoft Director General Satya Nadella said at the top of the profits call that the company opened data centers in 10 new places and four new continents during the past quarter.
