Microsoft Adds $130B in Data Center Leases in a Quarter, Plans to More Than Double Capacity by 2032

Microsoft disclosed in a regulatory filing Wednesday that it added more than $130 billion in data center leases in the latest quarter, and plans to expand its global data center capacity from about 12 gigawatts to more than 38 gigawatts by 2032, more than doubling capacity.

As of June 30, Microsoft's total commitments for leases not yet commenced reached $329.1 billion, up more than 67% from $196.6 billion in the prior quarter, the company's largest quarterly increase on record. Microsoft said the leases were primarily for data centers and that some remained subject to certain contract conditions.

Jonathan Neilson, head of Microsoft investor relations, said the leases reflect sustained strong demand and would serve customer needs for years to come. The expansion comes as Microsoft has faced data center capacity constraints, forcing it to restrict new cloud subscription sign-ups in markets such as the U.S. and Europe. Some customers have reportedly turned to competitors after failing to obtain additional capacity in desired regions.

Microsoft paused some leasing activity for much of 2025 and has now resumed and accelerated it. Capital expenditure reached $145 billion in the latest fiscal year ended June 30, 2026, and analysts expect spending to keep rising in coming years. The company also faces public opposition to data center construction in many U.S. communities, adding challenges to site selection and permitting.