Microsoft may already be adjusting its future plans after announcing it would spend on data center construction in January. Sources told Microsoft’s data center work in Indonesia, the United Kingdom, Australia, Illinois, North Dakota and Wisconsin has been delayed or slowed down. Some of these cases mean exiting negotiations, while others involve planned construction projects, the insiders said. These data centers will be the core of Microsoft’s efforts to develop more capabilities in artificial intelligence.
Microsoft representatives tell Bloomberg The company still plans to hold its $80 billion spending budget in data centers for fiscal 2025. Engadget has reached out to confirm that it will be updated if we receive comments from Microsoft. That is attributed to the one listed in the blog post of Vice Chairman and President Brad Smith. Posts published a few days before President Trump’s inauguration included some of the new administration’s dissatisfaction language. “The country has a unique opportunity to pursue this vision and is based on the basic ideas set for AI policy during President Trump’s first term,” it wrote. “At Microsoft, we are excited to be on this journey.”
Microsoft’s plans could be affected by imminent tariffs that are threatened and ultimately ended up with President Trump this week. Trade policy could make large infrastructure plans more expensive and has already caused uncertainty on Wall Street. The company may still spend $80 billion on the court, but cannot complete as many positions as previously calculated. Or maybe it is that in the months since the forecast was proposed, Microsoft has seen a decrease in expected demand.
