Microsoft Targets 38-Gigawatt Data Center Expansion

Microsoft is set to more than triple its data center footprint by 2032, according to reports. The company plans to reach 38 gigawatts of data center capacity, with a significant portion being dedicated to AI-specific chips.

This expansion comes on the heels of Microsoft's forecasted stronger-than-expected cloud growth in July, which eased concerns that infrastructure spending was outpacing demand.

The company expects $50 billion in capital expenditure for the fiscal first quarter of 2027 and a total of $175 billion for calendar year 2026. One change in its strategy is spreading long-term data center leases over 25 years, rather than the usual 15-year period, which will lower annual capital expenditures.