Microsoft targets 38 gigawatts of data center capacity by 2032, Bloomberg says

Sept 10 (Reuters) – Microsoft intends to expand its data-center capacity to roughly 38 gigawatts by 2032, more than three times its existing footprint, Bloomberg News reported Thursday, citing people familiar with the matter.

The report provided these details:

• The report said that just about 2 gigawatts of Microsoft’s present 12-gigawatt capacity is dedicated to AI-specific chips, a proportion projected to rise to roughly one-third of the 38 gigawatts it aims to bring online.

• Microsoft did not immediately reply to a Reuters request for comment.

• Technology firms have directed billions of dollars toward data centers to support generative AI offerings including ChatGPT and Copilot, services that demand enormous computing capacity.

• In July, Microsoft projected stronger-than-expected cloud growth, providing further evidence that its substantial AI investments are starting to yield results and helping to allay investor worries that heavy data-center and computing-infrastructure spending could exceed demand.

• Microsoft anticipates capital expenditures of $50 billion in the first quarter of fiscal 2027 and $175 billion for calendar year 2026.

• The company plans to extend long-term data-center leases across 25 years instead of 15, an approach that reduces its annually reported capital expenditures.