Microsoft Targets 38GW Data Center Capacity by 2032

Microsoft is planning to more than triple its data center capacity over the next five years. The company aims to reach 38GW of capacity by 2032, up from around 12GW currently.

This will involve a combination of self-owned and operated data centers as well as leased capacity from third-party providers. Microsoft has already signed large contracts with companies such as CoreWeave, Nscale, Lambda, Iren, and Nebius.

The company's capex has been growing consistently, reaching $175bn for 2027, up from an estimated $60 billion spent in November 2025. In recent quarters, Microsoft has brought online a significant amount of capacity, including 1GW of new data center space and 88 data centers in FY2026 alone.

To reach its target, the company will need to maintain a steady deployment rate, averaging around 1GW per quarter. While Microsoft declined to comment on its plans, the company has been actively building out its infrastructure globally, with projects including its 'Fairwater' sites - large data centers dedicated to AI workloads that house hundreds of thousands of GPUs.