Microsoft plans to more than triple data center capacity to ease AI compute shortage

Microsoft plans to more than triple its data center capacity, Bloomberg reported, as the company works to overcome a computing shortage that has forced it to turn away some AI and cloud business. The plan would expand the physical footprint and power capacity underpinning Microsoft's cloud and AI services. The report did not specify a timeline, capital figure or which regions would receive the additional capacity. The disclosure signals that compute supply, not just chip availability, remains a constraint on AI service growth.