Microsoft (MS) has reportedly canceled two data center leases, drawing attention to the reasons behind this decision. Amid persistent discussions about AI bubbles, there are interpretations that it is due to oversupply.
According to Bloomberg News on the 24th (local time), U.S. investment bank TD Cowen noted in a report on the 21st that MS has canceled data center lease agreements with at least two private operating companies. The canceled data centers have a capacity of hundreds of megawatts, equivalent to more than two typical data centers.
It has also been reported that MS has withdrawn from converting the qualification certificates of data centers deemed suitable for lease into formal lease agreements. As the world's second-largest cloud company, MS provides cloud services by renting external data centers in addition to its own owned centers, and it has canceled some contracts with external data centers.
The reasons behind MS's cancellation of data center leases are not known. TD Cowen stated, "MS has cited facility and power delays as justifiable reasons for contract termination in specific circumstances."
In its second report on the same day, TD Cowen raised the possibility that "OpenAI is transferring the AI model training previously conducted at MS to Oracle as part of a new partnership."
Last month, OpenAI and Oracle announced plans to establish an AI joint venture called "Stargate" with SoftBank and committed to investing at least $500 billion in the U.S.
TD Cowen analysts assessed that "initial analyses suggest that MS could be in a state of oversupply," indicating that they have secured AI computing capacity beyond necessity.
Bloomberg News pointed out that there are questions about whether one of the big tech corporations leading the AI field has begun to adopt a cautious stance regarding AI demand forecasts.
On Wall Street, there are concerns about the large expenditures required by major technology corporations such as MS, Meta, Google, and Amazon for building data centers to develop and operate AI services.
Amid fears, especially as the Chinese startup DeepSeek claims to have developed AI models comparable to those of U.S. corporations at significantly lower expenses, big tech companies are on alert. However, there are also analyses suggesting that the cancellations of lease agreements are primarily for the adjustment of their own data centers rather than oversupply.
Jordan Klein, an analyst at Mizuho Securities, remarked, "It is natural for plans to be adjusted to some extent because major cloud service providers operate through a mix of owned and leased data centers."
MS also stated, "We may adjust or regulate the pace of infrastructure investment in some regions, but we will continue strong growth in all regions," adding, "Our investment plans for this fiscal year remain unchanged."
MS indicated that it expects to spend $80 billion on AI infrastructure, including data centers, in the 2025 fiscal year.