TD Cowen analysts, including Michael Elias, reported that Microsoft (MSFT, Financial) has abandoned plans for new data center projects in the United States and Europe, initially intended to involve 2 gigawatts of power. The decision is attributed to an oversupply of AI computers.
Earlier this year in a February report, analysts highlighted Microsoft's cancellation of new data center leases in the U.S. Recent insights from TD Cowen's latest study indicate that over the past six months, Microsoft has canceled and delayed leases.
As Microsoft retreats from these data center projects, Alphabet's (GOOG) Google has secured some of the leases Microsoft released in Europe. Additionally, Meta (META) has obtained part of the capacity freed up by Microsoft's withdrawal from Europe.
