According to experts, the corporation has abandoned projects that were expected to use two gigawatts of power.

According to analysts at TD Cowen, Microsoft has backed out of new data center projects in the US and Europe that were expected to use 2 GW of electricity. The analysts blamed the retraction on an excess of the computer clusters that drive artificial intelligence.

The latest move, according to the analysts, also reflected Microsoft's decision to forgo some new business from ChatGPT producer OpenAI, which it has financed with about $13 billion. The analysts first alarmed investors in February with a note that highlighted leases Microsoft had abandoned in the US. Earlier this year, Microsoft and the firm announced that they had changed their multiyear contract to allow OpenAI to utilize cloud computing services from other businesses, as long as Microsoft didn't want the company itself.

In their most recent research note, released on Wednesday, the TD Cowen analysts stated that lease cancellations and deferrals were part of Microsoft's layoffs during the previous six months. The analysts noted that Meta Platforms had taken up part of the available capacity in Europe, while Alphabet's Google had intervened to acquire certain leases that Microsoft had given up in Europe.

Microsoft has stated that it would invest over $80 billion in the construction of AI data centers during its fiscal year, which concludes in June. However, the company anticipates that growth will start to slow down after that. According to executives, expenditure will move from new building to equipping data centers with servers and other equipment following a mad rush to assist OpenAI and other AI initiatives.