Microsoft Plans to More Than Double Data Center Capacity to Address AI Compute Shortage

Microsoft is pushing ahead with an ambitious plan to expand its global data center network from roughly 12 gigawatts to more than 38 gigawatts, a move aimed at alleviating the compute shortage that has forced the company to turn away some AI and cloud services business.

The roadmap includes both owned and leased data center facilities, but excludes capacity rented from so-called new cloud providers such as CoreWeave. Of Microsoft's current 12 GW data center capacity, only about 2 GW is dedicated to AI-specific chips. By 2032, that share is expected to rise to roughly one-third of the planned 38 GW capacity.