- Microsoft’s canceled data center leases lead to drops in AI and Bitcoin mining stocks.
- Microsoft rejected the Bitcoin investment proposal despite its growing corporate adoption trend.
The AI sector faces renewed turbulence amid concerns over Microsoft’s changing data center strategy.
Analysts at TD Cowen report that Microsoft has canceled over 2GW of planned data center leases across the U.S. and Europe in recent months, with further cancellations and deferrals in the past month.
This move seems tied to Microsoft’s decision to reduce support for additional OpenAI training workloads, hinting at a possible data center market oversupply.
The impact is already evident as AI chipmakers NVIDIA and Broadcom have dropped 5%, while AI server providers Dell and Super Micro fell 3% and 9%, respectively.
Remarking on the same, the analyst at TD Cowen, in conversation with Bloomberg, commented,
“As such, we believe the lease deferrals are intended to provide Microsoft with a medium-term runway of capacity in major markets to support cloud/inference workloads, with Microsoft canceling leases for capacity that exceeds its updated medium-term capacity needs.”
However...
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