Microsoft Cloud Growth forced by the shortage of data centers

(Bloomberg) – Microsoft Corp. said that its cloud -made activity will continue to grow slowly during the current quarter while the company has trouble building enough data centers to manage demand for its artificial intelligence products.

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The income from the Cloud Azure division will increase 32% to its third tax quarter, not much faster than during the last three months of 2024. Actions dropped from $ 415.79 to 9:33 in New York on Thursday.

The Redmond -based software manufacturer, based in Washington, is considered a leader in the marketing of artificial intelligence products, thanks to its close partnership with Chatgpt Maker Openai. In the past year, Microsoft has sparked a blizzard of AI Copilot AI AI, but efforts to monetize these products take more time than certain investors would prefer.

Microsoft said Azure AI services increased by 157%. But the overall sales of the Cloud Cloud unit are injured by the fact that the company still does not have enough data center capacity to meet the needs of customers, said financial director Amy Hood in an interview. Later, she told investors that capacity constraints should rise by the end of the financial year.

The company has nearly $ 300 billion in commercial service contracts that Microsoft has to provide in the future and has not yet recognized as a income, she said.

The demand remains strong, with commercial reservations – a measure of future income – increasing 67%, “far ahead” of what Microsoft expected, she said. Hood attributed this in part to the Azure of Openai commitments.

With Cloud Rivals Google and Amazon.com Inc., Microsoft spends more than ever in its history, the expenses that mainly go to the chips and data centers necessary to feed the services of Evid Power. The company said it expects to spend $ 80 billion this exercise in AI data centers. Wall Street began to question massive spending, especially after the Chinese upstart Deepseek published a new Open Source model that he claims to compete with American technology capacities to a cost fraction.

Capital expenditure during the quarter was $ 22.6 billion, said the company, exceeding analysts about $ 21 billion. The construction of the infrastructure has led to closer margins in the cloud sector.

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