Microsoft apparently passed on leasing more AI computing power from Nvidia-backed Nscale, declining an optional 500-megawatt expansion at Nscale's Ward County, Texas project. It keeps its existing commitment to lease about 240 megawatts there, and recently exited a rival 50-megawatt Nscale project in Essex, England, after delays pushed its power connection into the 2030s. Its capital expenditure and financing leases totaled $45.2 billion in the September quarter, below forecasts of about $50 billion, and it cut its 2026 investment projection to $170 billion from $175 billion. Concerns about power, equipment and finished data-centre buildings have grown amid potential delays at Nebius and IREN projects, though the article says this does not mean Microsoft is scaling back its AI commitment. Key next steps are Nscale finding replacement clients and Microsoft providing an updated timeline for bringing more computing power online.
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MSFT
▼ Likely negativeMicrosoft
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 11/04/2026 | 556.03 |
| Change that session | +6.73% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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