Microsoft Reports Over $130 Billion in New Data Center Leases

Microsoft Corp. reported more than $130 billion in new data center leases in the past quarter, signaling an accelerating pace of spending on artificial intelligence infrastructure.

The company's total commitments for leases that have not yet commenced were $329.1 billion as of the quarter ended June 30, Microsoft said Wednesday in a regulatory filing. That's up from $196.6 billion in the prior period.

"That's really a signal of the continued demand strength that we see," Jonathan Neilson, Microsoft investor relations chief, said in an interview. "These leases are going to be there to serve demand for many many years."

The future costs, which come on top of active leases, won't appear on Microsoft's balance sheet until it begins making payments on them. The company said they are "primarily" for data centers and some are "subject to certain contractual conditions being met."...

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RSK: If you think there is a slow down of data center use because of moratoriums, think twice. And the next big thing will be battery storage centers and campuses to help even the electric demand supply of data centers.