$80B AI Push Stalled: Microsoft’s Data Center Delays

In January of this year, Microsoft announced plans to invest $80 billion in data center construction by the end of fiscal year 2025, aiming to accelerate the training and deployment of artificial intelligence models. However, sources now indicate that this ambitious initiative has been delayed, with some elements scaled back in scope.

According to reports, Microsoft has postponed data center projects in Indonesia, the United Kingdom, Australia, and within the United States—in Illinois, North Dakota, and Wisconsin. Some of these projects may have been canceled altogether or indefinitely deferred.

Microsoft, in response, reaffirmed its commitment to the $80 billion expenditure on data center infrastructure by the end of fiscal 2025.

The delays are believed to be linked, in part, to recently proposed tariff policies by the Trump administration, which have increased the costs associated with large-scale infrastructure development. These rising costs may have prompted Microsoft to reassess and adjust its data center strategy, leading to the possible cancellation of certain planned facilities.

Additionally, shifts in demand for AI infrastructure may also be influencing Microsoft’s recalibrations. The growing prominence of fine-tuned, optimized models such as DeepSeek has prompted renewed interest in more targeted AI deployments, potentially driving Microsoft to refine the scale and focus of its data center expansion in the near term.