Microsoft Confirms Saudi Azure Region for 2026

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โดย Zacks Investment Research·SAUS·Read original
Summary · why it matters

Microsoft has confirmed that its Saudi Arabia East datacenter region will become available to customers in November 2026, marking a fresh milestone in its global cloud and AI expansion. The new region, located in the Eastern Province and comprising three Azure availability zones, will enable local government and private-sector organizations to run cloud and AI workloads, with an estimated $44 billion in projected economic activity from Microsoft's cloud technologies flowing to the Saudi economy between 2027 and 2030. This launch extends Microsoft's global Azure footprint to more than 70 regions across 33 countries. The announcement follows Microsoft's fiscal fourth-quarter results, which showed revenues rising 18% year over year to $90 billion, with Azure and other cloud services revenues growing 43% and full-year Azure revenues surpassing $100 billion for the first time. Microsoft Cloud revenues reached $59.3 billion in the quarter, up 27%, and commercial remaining performance obligations climbed 84% to $678 billion. The company added 31 datacenters and roughly one gigawatt of capacity during the quarter, part of a plan to double overall capacity within two years. Capital spending totaled $41 billion for the quarter, with about two-thirds directed toward short-lived assets such as GPUs and CPUs. For 2026, Microsoft's capital expenditure outlook stands at approximately $175 billion, adjusted from an earlier $190 billion figure following an accounting change that extends the useful life of datacenters and office buildings from 15 to 25 years. Management has guided for capital expenditures to grow further in fiscal 2027, citing sustained demand signals across its cloud and AI portfolio. Microsoft's datacenter push mirrors similar moves by Amazon and Alphabet, with Amazon raising its 2026 capital expenditure guidance to roughly $220 billion and Alphabet increasing its outlook to $195-$205 billion. MSFT shares have returned 3.6% year-to-date, and the stock trades at a forward P/E of 24.78X, higher than the industry's 23.13X. The Zacks Consensus Estimate for fiscal 2026 earnings is $19.59 per share, indicating 9.14% year-over-year growth. Microsoft currently carries a Zacks Rank #3 (Hold).

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Microsoft confirms Saudi Azure region for 2026, expanding cloud and AI capacity to meet sustained demand.

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