MSFT · News · 20261105N

AI Infrastructure Investment

MICROSOFT CORP · 2026-11-05 · Importance 40 · Surprise 42

Microsoft reportedly declined an option to expand its Texas computing-power agreement with Nscale by 500 megawatts, foregoing a potential commitment worth tens of billions of dollars while retaining its existing roughly 240-megawatt agreement. Microsoft also exited a separate 50-megawatt Nscale project in Essex, England, after power-connection delays pushed availability into the 2030s, and is tightening oversight of projects involving Nscale, IREN, and Nebius while reconsidering new third-party infrastructure deals. Microsoft reported $45.2 billion in capital expenditures and finance leases for the September quarter, below forecasts of about $50 billion, with delays in partner capacity contributing to the shortfall.