Microsoft expects some AI capacity constraints this quarter

An executive cautioned during Microsoft’s earnings call that customers might face AI service disruptions due to increased demand outpacing data center capacity. Amy Hood stated potential constraints as early as June, noting they aren’t related despite recent data center lease cancellations. The company remains committed to $80 billion in investments this year, with half focusing on U.S.-based facilities, and CEO Satya Nadella highlighted rapid expansion into 10 new countries and four continents during the quarter.