Here is a summary and key points from the article "No, Microsoft isn't abandoning its data center growth plan" by Fierce Network: Summary:
Despite reports suggesting Microsoft had slowed or paused some data center projects, CEO Satya Nadella clarified that changes to Microsoft’s data center rollout are strategic adjustments, not a pullback.
In Microsoft’s fiscal Q3 earnings call, Nadella highlighted that Microsoft opened data centers in 10 countries across 4 continents during the most recent quarter.
The company is adjusting the location and timing of capacity expansion to meet global and shifting demand efficiently. Nadella emphasized the need to avoid having oversized centers in a single region when demand is widespread and rapidly evolving.
CFO Amy Hood added that Microsoft is actually accelerating delivery of new data center capacity in certain areas to meet strong demand for cloud and AI services. Even with this acceleration, Microsoft expects to be “a little short, still, a little tight” by the end of their fiscal year, which she views positively as it points to robust ongoing demand.
The article highlights that this is all part of a planned strategy to match resources to global demand, not a retreat from their ambitious growth plans.
Key Financials from Microsoft’s Fiscal Q3 2025:
Revenue: up 13% to $70.1 billion.
Cloud revenue: up 20% to $42.4 billion.
Intelligent Cloud revenue: up 21% to $26.8 billion.
Azure and other cloud services revenue: up 33% (no specific figure given).
Commercial bookings: up 18%; backlog grew 34% to $315 billion.
Profit: up 18% to $25.8 billion.
Capital expenditures: $21.4 billion (slightly lower than expected).
About 40% of the commercial bookings backlog is expected to be recognized as revenue within the next 12 months.
Here’s a summary and key facts from the article “No, Microsoft isn’t abandoning its data center growth plan”: Key Points:
Recent reports suggested Microsoft might be slowing or pausing its data center projects in certain locations.
Satya Nadella, Microsoft CEO, clarified in the fiscal Q3 earnings call that these changes are strategic. The company is reshaping its rollout, not pulling back.
In the most recent quarter, Microsoft opened data centers in 10 countries across four continents.
Nadella emphasized it’s important to adjust locations and workloads according to global demand rather than concentrate resources in a single region.
Microsoft CFO Amy Hood said the company is actually working to “pull forward” new capacity in high-demand areas, rather than pull back. Even with accelerated efforts, Microsoft expects to be a bit “tight” on compute capacity to meet surging demand for its cloud and AI services.
Strong demand is seen as a positive signal, especially in uncertain economic conditions.
Fiscal Q3 2025 Numbers:
Revenue: Up 13% to $70.1 billion
Overall cloud revenue: Up 20% to $42.4 billion
Intelligent Cloud revenue: Up 21% to $26.8 billion
Azure and other cloud services revenue: Up 33% (exact figure not provided)
Profit: Up 18% to $25.8 billion
Capital expenditures: Slightly lower than expected, at $21.4 billion
Commercial bookings backlog: Up 34% to $315 billion, with roughly 40% expected to be recognized as revenue in the next 12 months
Conclusion:
Microsoft is not abandoning its data center growth, but is instead optimizing location and timing to better match global demand, and expects to continue increasing its investment in cloud and AI infrastructure to meet strong user needs. Source: Fierce Network No, Microsoft isn't abandoning its data center growth plan
