Microsoft Corp. has canceled some leases for US data center capacity, according to TD Cowen, raising broader concerns over whether it’s securing more AI computing capacity than it needs in the long term.

TC Cowen report indicates firm has pulled back on ‘converting negotiated and signed’ docs that are precursors to data center leases.

TD Cowen noticed Microsoft doing something strange on Friday. The Open AI partner and tech giant appeared to be cancelling data center leases. According to the market analysts, this is part of a wider pattern. TD Cowen said Microsoft had an “oversupply” problem. It’s another datapoint that points to Big Tech’s nervousness around its big bet on AI.

Microsoft, in an oversupply position, means the company has more data center capacity than it currently needs, according to TD Cowen.

Microsoft is canceling data center leases in a sign of a possible oversupply as OpenAI looks elsewhere for its infrastructure.

Mit Blick auf den KI-Nachfrage-Ausblick lässt ein Bericht der Investmentbank TD Cowen aufhorchen: Microsoft hat demnach begonnen, Leasingverträge für eine beträchtliche Menge an Rechenzentrenkapazität in den USA zu kündigen.

Investing.com-- Microsoft Corporation (NASDAQ: MSFT) has cancelled data center leases with at least two operators in the U.S. and that the company had also scaled back plans for international spending, according to analysts at TD Cowen. Shares in Microsoft were marginally higher in premarket U.S. trading on Monday.