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Financial Times
Microsoft signs $130bn in data centre leases as it races to meet AI demand
Microsoft has signed more than $130 billion in data center leases to satisfy the rising demand for computing infrastructure driven by AI demand. This move aims to enhance its competitive edge as the company plans to double its data center capacity over the next two years, having already brought online 31 new centers recently. Despite increased capital expenditures, Microsoft’s earnings have surpassed expectations, reflecting growth in its cloud services, particularly Azure. The company's commitment to expand its data center footprint coincides with rising investments in AI technologies.
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Published 30 Jul 2026, 02:40 UTC3 min read
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Summary
TL;DR
- Microsoft signed over $130 billion in data center leases to meet increasing AI demands.
- Plans to double data center capacity within two years.
- Reported strong earnings, defying the downturn in AI-related stocks.
- Capital expenditures rose to $41 billion in Q2, up 70% year-over-year.
- Sales increased 18% year-on-year to $90 billion for the quarter.
Interesting facts
- Microsoft's intelligence cloud segment, which includes Azure, grew by 32%.
- OpenAI contributed $24.1 billion of revenue to Microsoft over the past year.
- The company aims to allow flexibility in model usage for better economic viability.