
IDC delays aren't bearish: MSFT shifts GPUs to leasing; compute rev $4-5B in 2025 and $8-9B in 2026.
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US tech stocks tumbled today due to a channel check indicating Microsoft is cutting data center projects.
Rumor has it that $MSFT is paying penalties to exit some data center contracts & power agreements, drastically changing its tone on CAPEX growth. This could be another DeepSeek shockwave hitting the semi supply chain.
Since January, I've been hearing rumors about Microsoft delaying data centers. After verification, we confirmed they indeed cut two IDCs - Wisconsin Kenosha and Georgia Atlanta.
Here are some details from conversations with data center experts.
The Wisconsin Kenosha data center, spanning 240 acres, is planned to be delayed by 3 years because:
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