MSFT · News · 20261105N

AI Infrastructure Investment and CapEx

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

Third-party reports say Microsoft declined an option to expand its existing Texas computing-capacity agreement with UK-based Nscale, forgoing a potential deal worth tens of billions of dollars; the existing agreement remains in place. One report describes the proposed Ward County expansion as 500 megawatts, compared with roughly 240 megawatts already committed at the facility. Microsoft had also exited a 50-megawatt Nscale project in Essex, England, after power-connection delays pushed the expected connection into the 2030s. Reports say Microsoft is tightening oversight of projects involving Nscale, Nebius and IREN and reconsidering additional neocloud agreements amid delays, regulatory snags and high costs.

Key facts

• Microsoft reported $45.2 billion of capital expenditures and financing leases in its September quarter, below forecasts of about $50 billion. source