Microsoft Expands Data Center Capacity Plans to 38 Gigawatts by 2032

Microsoft is planning to significantly expand its data center capacity, aiming to triple it to around 38 gigawatts by 2032. This move comes after the company reported a 1.06% intraday rise in stock price following Bloomberg's report on the matter.

The planned expansion will see AI-specific chips account for roughly a third of the total data center capacity, with an estimated 13 gigawatts dedicated to this purpose by 2032. This is a notable increase from the current 2 gigawatts centered on AI-specific chips out of Microsoft's existing 12 gigawatts.

The company has also announced its intention to spread long-term data center leases over 25 years, rather than the previous 15 years. While this change does not affect the actual building and cost, it will alter how Microsoft reports its annual capital expenditure. For fiscal year 2027, the company expects $50 billion in capital expenditures, with a total of $175 billion for calendar year 2026.

This move follows Microsoft's July forecast of stronger-than-expected cloud growth, which helped ease concerns that infrastructure spending was outpacing demand.