Microsoft expects some AI capacity constraints this quarter

Microsoft customers could encounter services disorders when using AI services due to the request of exceeding the company’s ability to bring data centers online, the executive director warned during the call to earning a company

Microsoft’s EVP and CFO Amy Hood said it was at a fiscal earnings in the third trimester on Wednesday, a company on Wednesday, a company can face the capacity limit of AI capacity as early as June, because demand is higher than they can cope with data centers.

“We hoped we were going to be balanced by the end of the Q4, but we saw increased demand, as you saw through a quarter,” Hood said. “So we’ll be a little short, a little tight as we go out the year.”

The time of Hood’s statements is interesting because Microsoft allegedly canceled more data center lease this year.

In February, the TD Cowen Investment Bank posted a letter that is Microsoft The canceled upwards are more information This is equated with “a couple of hundred megawatts” or equivalent to two data centers. In two months since then they existed Multiple reports additional cancellation of the Data Center lease.

Microsoft says these two cases are not necessarily related. AND The company repeated today that he is still dedicated to investing This year $ 80 billion in data centers – As originally intended for this year. Half of this figure is intended for data centers based in the US.

Hood also added that today demand and demand are not the same thing.

“Just a reminder, these are very long decisions about the weather, from Earth to construction, it can be, you know, for a time of five to seven years, two to three years,” Hood said. “So we are constantly in a balance as we look at the demand curve.”

Executive Director Microsoft Satya Nadella said that at the top of the Earnings Company opened data centers in 10 new countries and four new continent in the last quarter.