Following its January announcement that the company would spend $80 billion to build data centers, Microsoft may already be adjusting its future plans. Sources told Bloomberg that Microsoft has postponed or slowed down the construction of data centers in Indonesia, the United Kingdom, Australia, Illinois, North Dakota, and Wisconsin. According to these insiders, in some cases this has meant withdrawing from negotiations, and in others it has delayed planned construction projects. These data centers will play a central role in Microsoft’s efforts to develop artificial intelligence capabilities.
Despite the apparent change in approach, a Microsoft spokesperson told Bloomberg that the company still plans to stick to its $80 billion data center spending budget for fiscal 2025. Engadget has reached out for confirmation and will update the article if we receive a comment from Microsoft. This figure was set out in a blog post attributed to the company’s vice chairman and president, Brad Smith. The post, published a few days before President Trump’s inauguration, contained polite words to the new administration. “The country has a unique opportunity to realize this vision and build on the fundamental ideas behind AI policy during President Trump’s first term,” the post reads. “At Microsoft, we are excited to be part of this journey.”
Microsoft’s plans may have been affected by the looming tariffs threatened by President Trump and finally implemented this week. Trade policy is likely to make large infrastructure plans more expensive and has already caused uncertainty on Wall Street. It may be that the company will still spend about $80 billion, but will not be able to complete as many projects as it had previously expected. Or it could be that in the months since the forecast was presented, Microsoft has already seen a decline in expected demand.
