Microsoft halts Ohio data center project, surprising local officials
Microsoft has halted a data center project in Heath, Ohio, catching local officials off guard, according to Bloomberg.
This follows earlier reports of the company pausing or canceling other AI infrastructure projects in the US, which could indicate overestimated demand for data centers as the industry goes on a massive $315 billion capex spending spree.
Noelle Walsh, Microsoft’s head of cloud operations, confirmed in a LinkedIn post this week that the company is still on track to spend $80 billion on AI infrastructure:
“In recent years, demand for our cloud and AI services grew more than we could have ever anticipated and to meet this opportunity, we began executing the largest and most ambitious infrastructure scaling project in our history. By nature, any significant new endeavor at this size and scale requires agility and refinement as we learn and grow with our customers. What this means is that we are slowing or pausing some early-stage projects. While we may strategically pace our plans, we will continue to grow strongly and allocate investments that stay aligned with business priorities and customer demand.”
Noelle Walsh, Microsoft’s head of cloud operations, confirmed in a LinkedIn post this week that the company is still on track to spend $80 billion on AI infrastructure:
“In recent years, demand for our cloud and AI services grew more than we could have ever anticipated and to meet this opportunity, we began executing the largest and most ambitious infrastructure scaling project in our history. By nature, any significant new endeavor at this size and scale requires agility and refinement as we learn and grow with our customers. What this means is that we are slowing or pausing some early-stage projects. While we may strategically pace our plans, we will continue to grow strongly and allocate investments that stay aligned with business priorities and customer demand.”
