# Microsoft Expects Some AI Capacity Constraints This Quarter  ## Metadata - Author: [[Rebecca Szkutak]] - Full Title: Microsoft Expects Some AI Capacity Constraints This Quarter - Category: #articles - Summary: Microsoft may face AI service disruptions due to high demand outpacing their ability to set up new data centers. CFO Amy Hood mentioned that they expect capacity constraints as early as June, despite plans to invest $80 billion in data centers this year. The company has canceled multiple data center leases but insists these decisions are not directly related to the expected demand issues. - URL: https://techcrunch.com/2025/04/30/microsoft-expects-some-ai-capacity-constraints-this-quarter/ ## Highlights - In February, investment bank TD Cowen published a memo that Microsoft [cancelled multiple data center leases](https://techcrunch.com/2025/02/25/microsoft-cancels-some-of-its-ai-data-center-leases/) that equated to a “couple hundred megawatts” or the equivalent of two data centers. In the two months since, there have been [multiple](https://www.bloomberg.com/news/articles/2025-03-26/microsoft-abandons-more-data-center-projects-td-cowen-says) [reports](https://www.cnbc.com/2025/04/21/amazon-has-paused-some-data-center-lease-commitments-wells-fargo.html) of additional data center lease cancellations. ([View Highlight](https://read.readwise.io/read/01jt4gy2ys2911r9w6wxfpmy9j))