Microsoft plans to expand data center capacity to 38 gigawatts by 2032
Microsoft intends to triple its current power infrastructure, aiming for a total capacity of 38 gigawatts by the end of 2032 as it deepens AI investments.
Microsoft plans to increase its data-center capacity to approximately 38 gigawatts by 2032. This target represents more than three times the company's current footprint of roughly 12 gigawatts, although only about two gigawatts of present capacity supports AI-specific chips. By 2032, estimates indicate that one-third of the new total will be dedicated to powering generative AI services like ChatGPT and Copilot, up from a smaller share today. Microsoft expects capital expenditures to reach $50 billion for the fiscal first quarter of 2027 and $175 billion for the 2026 calendar year. To manage these costs, the company intends to extend long-term data center leases to 25 years instead of the standard 15 years. These measures are expected to lower annual reported capital expenditures. Technology firms have been investing billions in such infrastructure following July forecasts showing strong cloud growth, a move that has soothed investor concerns about whether demand matches heavy spending on computing power. Microsoft did not immediately respond to requests for comment regarding the expansion.
