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.
- 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.
While Microsoft is dynamically managing its data center investments based on global demand patterns, it is not slowing down or abandoning its growth. Instead, its expansion remains aggressive and is being recalibrated to keep pace with skyrocketing demand for its AI and cloud services.
For full details, see the original article: Fierce Network – No, Microsoft isn't abandoning its data center growth plan
Source: Fierce Network No, Microsoft isn't abandoning its data center growth plan