Microsoft Plans to Triple Data Center Capacity to 38 Gigawatts by 2032

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Microsoft plans to expand its data center capacity to about 38 gigawatts by 2032, more than triple its current footprint, according to Bloomberg. Of Microsoft's current 12 gigawatts, only about 2 gigawatts are centered on AI-specific chips, and that share is expected to reach roughly a third of the 38 gigawatts, putting AI silicon near 13 gigawatts by 2032. The company expects $50 billion of capital expenditure in the fiscal first quarter of 2027 and $175 billion for calendar 2026. Microsoft is also planning to spread long-term data center leases over 25 years rather than 15, which lowers the annual capital expenditure it reports, though the building and the cost stay the same and only the annual reporting changes. In July the company forecast stronger than expected cloud growth, which eased concerns that infrastructure spending was running ahead of demand.

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Microsoft plans to triple data center capacity to ~38 GW by 2032 with $175B capex in calendar 2026, a major infrastructure investment.

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