Microsoft expects some AI capacity constraints this quarter | TechCrunch

An government cautioned all the way through Microsoft’s profits name on Wednesday that consumers may face AI provider disruptions as call for outstrips the corporate’s skill to deliver information facilities on-line.

Microsoft’s EVP and CFO Amy Hood mentioned all the way through the corporate’s fiscal 2025 third-quarter profits name that the corporate would possibly face AI capability constraints as early as June.

“We had was hoping to be in steadiness by means of the tip of This autumn however we did see some higher call for, as you noticed in the course of the quarter,” Hood mentioned. “So we’re going to be somewhat quick, somewhat tight as we go out the yr.”

The timing of Hood’s commentary is fascinating as a result of Microsoft has reportedly cancelled a couple of information heart rentals this yr.

In February, funding financial institution TD Cowen printed a memo that Microsoft cancelled a couple of information heart rentals that equated to a “couple hundred megawatts” or the an identical of 2 information facilities. Within the two months since, there were a couple of reviews of extra information heart hire cancellations.

Microsoft says those two cases aren’t essentially comparable. The corporate reiterated as of late that it’s nonetheless dedicated to making an investment $80 billion into information facilities this yr — because it in the beginning earmarked initially of this yr. Part of that determine is for U.S.-based information facilities.

Hood additionally added that call for as of late and insist the next day to come aren’t the similar factor.

“Only a reminder, those are very lengthy lead time selections, from land to construct out, it may be, , lead occasions of 5 to seven years, two to 3 years,” Hood mentioned. “So we’re repeatedly in a balancing place as we watch call for curves.”

Microsoft CEO Satya Nadella mentioned on the best of the profits name that the corporate opened information facilities throughout 10 new international locations and 4 new continents all the way through this previous quarter.