Microsoft ‘slowing or pausing� some data centre construction projects

Mass timber used in a data centre build (Image courtesy of Microsoft) Cross-laminated timber is placed for a Microsoft data centre under construction in northern Virginia. (Image courtesy of Microsoft)

US-based technology company Microsoft is “slowing or pausing� some early-stage data centre construction projects, the president of its cloud computing division has announced.

In a post on LinkedIn, Noelle Walsh, president of cloud operations + innovation said the company is making “adjustments� to data centre infrastructure projects.

Microsoft is on track to spend US$80 billion building out data centres according to Walsh, as it expands to 350 facilities across 60 regions worldwide.

But after it emerged that the company was putting a $1 billion data centre expansion project in Ohio on hold, Walsh said she wanted to explain some of the considerations that have shaped Microsoft’s decision making.

“Data centre planning is a multi-year and capital-intensive programme we plan for years in advance to ensure we have sufficient infrastructure in the right places. In recent years, demand for our cloud and AI services grew more than we could have ever anticipated and to meet this opportunity, we began executing the largest and most ambitious infrastructure scaling project in our history,� Walsh said.

“By nature, any significant new endeavour at this size and scale requires agility and refinement as we learn and grow with our customers. What this means is that we are slowing or pausing some early-stage projects. While we may strategically pace our plans, we will continue to grow strongly and allocate investments that stay aligned with business priorities and customer demand.�

She said Microsoft would continue to invest across 18 countries where it has made infrastructure investments, from Australia in October 2023 to South Africa in March 2025.

Data centres have proven a significant and growing source of new work for major contractors across the globe in recent years, fuelled by high levels of investment in artificial intelligence and cloud computing.

In February this year, US-based Fluor and Germany’s Hochtief both explained why they still see data centres as a major opportunity for the future and how they plan to succeed in the market.

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