Satellite images reveal trouble brewing at Microsoft's AI data center partners
Source: Business Insider ·
Satellite images reveal potential delays at two Microsoft AI data center projects, highlighting power and permitting challenges facing neoclouds.
From the source
Microsoft chief financial officer Amy Hood.Elaine Thompson/APMicrosoft said third-party data center delays contributed to a shortfall in infrastructure spend.Satellite imagery points to potential setbacks for the massive IREN and Nebius data center projects.Neoclouds are under mounting pressure to deliver on their multibillion-dollar promises.Microsoft spent $5 billion less than expected on AI last quarter, and satellite images may show why.In Microsoft's quarterly earnings call last month, chief financial officer Amy Hood said delays by third-party cloud providers contributed to lower-than-expected AI infrastructure spending. Microsoft cut its annual capital expenditure forecast by $5 billion.The news sent neocloud stocks tumbling, highlighting concerns that the young companies can't deliver on their multibillion-dollar promises.Although Microsoft didn't name names, two data center projects from neoclouds Iren and Nebius could be responsible, according to satellite analysis from…