Microsoft aims to expand its data center capacity to 38GW by 2032, according to Bloomberg. This target represents more than triple the current capacity of 12GW and exceeds the peak electricity demand of New York State.
The projected capacity includes both company-owned facilities and leased infrastructure from external partners. However, the company notes that these plans remain subject to change due to long construction timelines and shifting customer requirements.
Currently, Microsoft faces significant challenges in meeting demand for its Azure cloud services, which has led to some orders being redirected to competitors. The company previously paused certain construction projects, further straining its supply-demand balance.
The company is also shifting its focus toward artificial intelligence. While only 2GW of the current 12GW capacity is dedicated to AI chips, Microsoft intends to allocate approximately one-third of its future 38GW capacity, or 12 to 13GW, to AI-specific hardware by 2032.
