See the full story in the original article.
Read the original on Yahoo Finance ↗
Keywords
MSFTdata centerselectricityartificial intelligence
Open a keyword to see other news on the same topic.
Related tickers and likely impact
MSFT
▼ Likely negativeMicrosoft
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $4.0T |
| Close on 10/20/2026 | 532.13 |
| Change that session | -0.26% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Microsoft (MSFT) Withdraws From UK AI Data Center Project
Microsoft has withdrawn as anchor tenant from Nscale's planned AI data center in Loughton, Essex, citing power supply delays. The article says the site is not expected to receive sufficient grid power until the 2030s, far beyond Microsoft's planning horizon, so the company judged the power-access risk too high for its Azure plans. Nscale must now search for new hyperscale tenants for the site. The article notes Microsoft is already committing around US$175b to US$190b to 2026 infrastructure and has locked in a 1,100 MW power agreement with NiSource.
- Microsoft pulls out of Nscale U . K . data - center deal over power - supply issues
Microsoft has withdrawn from a deal to lease capacity at Nscale's 50-megawatt Loughton data center in the U.K. because of power-supply issues, a setback as Nscale prepares to go public. The facility was to host about 23,000 Nvidia GB300 chips for Microsoft Azure and was expected to go live by the end of this year, but that timeline no longer holds due to challenges with the U.K. power grid. Microsoft says it remains committed to Nscale and that the decision relates to a single site, while Nscale says it is exploring alternative power sources and its relationship with Microsoft remains strong. The article notes that clients can pull out of deals when projects are delayed, threatening revenue. Nscale recently filed for a U.S. IPO and last month raised $3.36 billion through convertible loan notes in a pre-IPO round.
- Microsoft Walks Away From Nscale’s UK Data Center as the Grid Runs Out of Power
According to Reuters citing The Telegraph, Microsoft (MSFT) has withdrawn from an AI data center in Loughton, Essex that Nscale was building for it, though no reason was given. Grid officials reportedly told Nscale power would not be available until the 2030s, and Nscale says it remains committed to the site and is exploring other power sources. The site was planned to house about 23,000 Nvidia chips, roughly 11.5% of a program of about 200,000 chips. Meanwhile, Microsoft's cash capex in the June quarter reached $35.80 billion, more than double the year-earlier figure. The article argues the problem is grid timing rather than AI demand, and Microsoft reports results on October 28.
- Microsoft (MSFT) Is Facing Fresh Regulatory Pressure
Microsoft agreed a 20-year power supply deal with NiSource for 1,100 MW to serve its expanding AI data centers. Meanwhile, the UK Competition and Markets Authority is preparing to label parts of Microsoft's business software as having strategic market status, and Microsoft, Apple and Palantir face possible new US Congressional oversight and hearings on their partnerships and operations. The article says the power deal helps reduce execution risk for the roughly US$175b to US$190b of 2026 capex that Microsoft's investment narrative relies on, while the regulatory moves add political and regulatory risk. Key items to watch are future disclosures linking data center expansion and power contracts to AI and Azure usage, along with any quantified costs from UK rules or US hearings.
- Microsoft Signs 1,100 MW Power Deal With NiSource Until 2048 as AI Spending Outruns the Grid
NiSource (NI) announced a 20-year energy agreement with Microsoft starting in 2028, adding about 1,100 MW to its generation pool for an Indiana data-center campus, with Microsoft paying for all the generation and transmission needed to serve the site. That capacity is roughly what Microsoft brings online in a full quarter, while its cash capex grew from $23.9 billion in fiscal 2022 to $116 billion in fiscal 2026, almost five times as much. Much of that spending goes to short-lived CPUs and GPUs that earn nothing until power is available, and management expects the broader capex measure to grow again in fiscal 2027, starting with more than $50 billion in the September quarter. NiSource signed Alphabet and expanded its Amazon agreement in April, so three hyperscalers now have power deals with the same Indiana utility.
- NiSource Expands Microsoft Power Deal, Projects $1.75B In Customer Savings
NiSource (NI) announced a 20-year electricity agreement with Microsoft for its planned northwest Indiana campus, with service expected to begin in 2028. The company says its broader strategy could save existing NIPSCO electric customers about $1.75 billion over the life of data-center contracts, up from a previously announced $1.4 billion, or as much as $140 per customer annually. Through NiSource Generation Company (GenCo), about 1,100 MW of generation will be added, along with 600 MW of battery storage under a long-term tolling agreement, and Microsoft will fully fund the generation and transmission infrastructure. The project will also upgrade NIPSCO's transmission system to improve grid reliability and shield existing customers from data-center costs. NI shares rose 2.8% in premarket trading, and more details will come with the third-quarter earnings call on October 28.
Related markets
Latest news
- The simple reason JPMorgan thinks SpaceX will triple: It's going after a $28 trillion market
SpaceX (SPCX) rose 10% on Wednesday after reporting its second earnings as a public company, which showed a profit and large AI revenue. JPMorgan analyst Doug Anmuth more than doubled his price target to $500 from $240, implying upside of over 200% from Wednesday's price. He wrote that no other company is as well positioned to pursue the combined anticipated total addressable market of $28T+. AI, tied to Grok, has overtaken rockets, satellites, telecom and chips to become SpaceX's largest business by revenue. Musk projects annual recurring revenue of between $500 billion and $1 trillion by the end of 2027, and the boards of SpaceX and Tesla have formed special committees to explore a tie-up.
- A Once-in-a-Generation Opportunity: 1 Artificial Intelligence (AI) Stock to Buy Before it Soars 1,233%, According to Cathie Wood
Ark Invest's updated valuation model, led by Cathie Wood, projects Tesla shares could reach $5,000 by 2031 in its upside scenario, versus about $375 currently. The downside scenario still reaches $3,300 per share, while the bull case implies a $20.4 trillion market cap, $1.62 trillion in revenue and a 65% EBITDA margin, compared with Tesla's $95 billion in 2025 revenue and 15.4% adjusted EBITDA margin. Ark estimates robotaxis will account for 80% of Tesla's enterprise value by 2031, with 10 million robotaxis generating $900 billion in annual revenue and 1.2 million Optimus robots generating $254 billion. The author views the current robotaxi operation as small compared with Ark's fleet and Optimus as speculative, and notes Tesla already trades at a premium valuation, so he sees it as a speculative long-term investment and would not buy simply because of a forecast of more than 1,200% upside.
- Is It Time to Sell CoreWeave Stock? Nvidia CEO Jensen Huang Doesn't Think So.
CoreWeave shares fell about 25% from Oct. 12 to Oct. 16 as yields on its debt spiked to 15%, a level the article classifies as distressed debt that signals market doubts about repayment. Nvidia, which held about 47 million shares as of the second quarter, roughly 10% of CoreWeave's total float, has a CEO, Jensen Huang, who says he is 'optimistic' and that CoreWeave's cost of capital is actually decreasing. The article notes CoreWeave is unprofitable but growing revenue rapidly, and that its bonds were initially issued at high yields, showing a gap between market and creditor views. The author is not racing to buy the debt but is not bearish, and believes the stock should be fine if CoreWeave delivers on the major deals it has signed.
- Netflix has dipped its toe into theatrical. Is it ready to jump in?
On its Q3 earnings call, Netflix co-CEO Ted Sarandos reaffirmed the streamer's streaming-first strategy, even as the company plans 30 theatrical releases in 2027, on par with 2026. One test is Greta Gerwig's 'Narnia: The Magician's Nephew,' which will get a wide release and a 49-day exclusive theatrical window in February. The move comes as the stock has slumped roughly 30% since January and view hours growth has stalled, and as Netflix restructured its leadership by bringing in former Disney executive Peter Rice as chief content officer and dismissing head of film Dan Lin. Wedbush analyst Alicia Reese argues theatrical releases are a net positive for reach and streaming demand, while Citizens analyst Matthew Condon says theatrical can help build stronger IP and attract top talent. Sarandos said the business flywheel is working but U.S. execution needs to improve, and that Netflix needs more 'home runs.'
- Judge orders Meta to pay $25 bn to New Mexico in Cambridge Analytica case
A New Mexico judge ruled that Meta must pay the state $25 billion in the Cambridge Analytica case, after a jury last month found the company had deceived users. The penalty comes a couple of months after Meta agreed to pay $18 billion to settle claims brought by 48 other states. Cambridge Analytica improperly harvested personal data from millions of Facebook users for targeted political advertising, including through a personality quiz app that reached roughly 87 million users worldwide. Jurors found the misconduct affected all of the state's more than 2.1 million residents. Meta said it disagreed with the verdict and would keep defending itself.
- The AI Boom Just Sent a Warning Sign That Has Nothing to Do With Stock Prices
CoreWeave's share price has dropped more than 30% in about two weeks, and its bonds sold off sharply: notes issued earlier this year at a 9.675% yield now yield around 15%, meaning the market is pricing in much more risk. The author asks whether this signals a broader repricing over whether AI companies will earn enough return on their massive infrastructure spending, given CoreWeave's costly data centers and the long path to break-even. As an illustration, refinancing a hypothetical $1 billion loan at 15% instead of its original terms would add roughly $53 million in annual expenses, and the author compares the situation to the fiber-optic telecom build-out about 30 years ago. Credit spreads have widened about 50 basis points over the past month, an early warning rather than real systemic stress. Still, the author would not sell tech stocks or the S&P 500 over CoreWeave alone, and prefers companies financing AI expansion through cash flow rather than heavy debt.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.