MSFT · 10-K · 2025A · Full report
Datacenter Expansion Commitments
MICROSOFT CORP · 2025-07-30 · Importance 64 · Surprise 42
The company is evaluating and expanding datacenter locations and increasing server capacity to meet growing AI demand and notes material contractual commitments for construction and purchases as of June 30, 2025. Construction commitments total $32,149 million and purchase commitments total $109,953 million (purchase commitments primarily relate to datacenters and include open purchase orders and take-or-pay contracts). Additions to property and equipment increased by $20.1 billion in fiscal 2025, reflecting higher capital investment in datacenters and infrastructure. These commitments are disclosed in the contractual obligations schedule and represent multi-year capital outlays the company expects to fund from cash, operations, and capital markets.
Key facts
- Purchase commitments, primarily related to datacenters and including open purchase orders and take-or-pay contracts, totaled $109,953 million as of June 30, 2025 (with $103,940 million due within the next fiscal year and $6,013 million thereafter).
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | committed | -14.3% | Purchase commitments, primarily related to datacenters and including open purchase orders and take-or-pay contracts, totaled $109,953… |
| liability | negative | committed | -0.8% | Purchase commitments, primarily related to datacenters and including open purchase orders and take-or-pay contracts, totaled $109,953… |