Microsoft responds to the removal of two data centers: insists on over $80 billion in capital expenditure, but adjustments may be made in certain areas

This Monday, Microsoft reiterated its commitment to its capital expenditure plan of over $80 billion, while also acknowledging that it may strategically adjust or slow down infrastructure construction in certain areas.

Wall Street Journal previously reported that last Friday, TD Cowen analysts released a report indicating that Microsoft has canceled several leasing agreements with multiple private data center operators, involving a total power capacity of hundreds of megawatts. TD Cowen believes that these actions suggest that Microsoft may be facing a "supply surplus" in data centers. Following the announcement, Microsoft's stock price fell 1.9% that day, marking the largest single-day decline for the Dow Jones Industrial Average this year.

In response to market skepticism, Microsoft quickly made a statement. A company spokesperson stated via email on Monday:

"Our plan to invest over $80 billion in infrastructure this fiscal year is still on track, and we will continue to grow at a record pace to meet customer demand."

Despite reaffirming its investment commitment, Microsoft also acknowledged that it may make strategic adjustments. The spokesperson stated:

"Thanks to the significant investments we have made so far, we are well-prepared to meet current and growing customer demand. In just the past year, we have added more capacity than in any previous year in history. While we may strategically adjust the pace or scale of infrastructure in certain regions, we will continue to maintain strong growth across all areas. This enables us to invest and allocate resources to future growth areas."

On Monday, Microsoft's stock price fell by as much as 1%. Data center company Digital Realty Trust dropped by 2.7%, Vistra, which powers data centers, saw its stock price fall nearly 5%, and data center operator Applied Digital plummeted by 13%.

As early as the beginning of January this year, Microsoft announced plans to invest over $80 billion in this fiscal year (ending in June) to build data centers capable of handling AI workloads.

This substantial investment reflects Microsoft's strategic layout in the AI era. In addition to providing Azure public cloud services data centers for its own business and customers, Microsoft also leases data center capacity through suppliers like CoreWeave. Furthermore, Microsoft is a major supporter of OpenAI and participated in the $500 billion "Interstellar Gateway" data center plan announced last month.

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