AsianFin -- Microsoft has started canceling leases for a significant amount of data center capacity in the US, potentially indicating concerns over overbuilding AI computing infrastructure, TD Cowen reported.
According to the brokerage, OpenAI's largest backer has voided leases amounting to “a couple of hundred megawatts” of capacity, based on information gathered from supply chain inquiries.
Microsoft has ceased converting "statements of qualifications"—agreements that typically lead to formal leases—a strategy previously used by competitors like Meta Platforms Inc. when scaling back capital expenditures, TD Cowen noted.
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