Research|Why Microsoft Has Delayed Two Data Centers

Wisconsin Kenosha and Georgia Atlanta

Disclaimer: The content provided in this newsletter is for informational purposes only and does not constitute investment advice. We are not registered investment advisors, and nothing in this newsletter should be construed as a recommendation to buy or sell any securities. Always do your own research and consult with a licensed financial professional before making any investment decisions.

US tech stocks tumbled today due to a channel check indicating Microsoft is cutting data center projects.

Rumor has it that $MSFT is paying penalties to exit some data center contracts & power agreements, drastically changing its tone on CAPEX growth. This could be another DeepSeek shockwave hitting the semi supply chain.

Since January, I've been hearing rumors about Microsoft delaying data centers. After verification, we confirmed they indeed cut two IDCs - Wisconsin Kenosha and Georgia Atlanta.

Here are some details from conversations with data center experts.

The Wisconsin Kenosha data center, spanning 240 acres, is planned to be delayed by 3 years because: