Microsoft cancels data center lease, investors worry about AI boom losing steam

On February 25th, Jinshi Data, on Monday, an analysis report that showed that the possibility of Microsoft's (MSFT.O) data center capacity leasing may slow down caused the market to follow, further exacerbating investors' doubts about the potential lack of momentum in the stock market led by artificial intelligence. TD Cowen analysts reported that Microsoft has canceled a large number of data center capacity leases in the United States, indicating that there may be an oversupply as its artificial intelligence infrastructure is built. Analysts said that TD Cowen cited its Supply Chain inspection results, stating that Microsoft has canceled capacity leasing contracts totaling hundreds of megawatts with at least two private data center operators. A Microsoft spokesperson stated that the plan to invest over 80 billion US dollars in the field of artificial intelligence and cloud computing this fiscal year is still proceeding as planned, and although we may strategically accelerate or adjust infrastructure in certain areas, we will continue to maintain a strong rise in all regions. Although Microsoft's stock price was not significantly affected, the stock prices of related companies were hit. Constellation Energy and Vistra, the U.S. utilities companies that provide power to data centers, fell by 5.9% and 5.1% respectively.