Microsoft is planning to more than triple its data center capacity over the next five years.. As reported by Bloomberg and citing people “familiar with the plans,” the cloud company is targeting 38GW of capacity in 2032. It currently operates around 12GW of data center capacity.. – Microsoft.
This will comprise a combination of self-owned and operated data centers and leased capacity from third-party providers, including neoclouds, with which Microsoft has signed some large contracts, including CoreWeave, Nscale, Lambda, Iren, and Nebius. In November 2025, it had spent an estimated $60 billion..
The company’s capex has consistently grown as well. In 2024, total capex was $55.7bn. In the years following, this has grown to $115.9bn and then $145.3bn in 2026, estimated to reach $175bn for 2027..
Microsoft declined to comment on its data center building plans to Bloomberg, but the company is known to be developing in several locations globally, having sworn off NDAs related to its projects in March of this year.. In recent quarters, the company has brought online 1GW of capacity, and in FY2026 brought online 88 data centers.
In Q4 alone, the company brought online 31 data centers.. To reach 38GW in 2032, the company will need to slightly ramp up its deployment rate, bringing the average quarterly rate to just over 1GW.. Among the projects to have come online are two of the company’s “Fairwater” sites, which are large and powered AI-dedicated data centers that house hundreds of thousands of GPUs..
DCD has reached out to Microsoft for comment.. While data center capacity is being built out at a rapid pace by hyperscalers and data center operators alike, public pushback and scrutiny are also increasing. In the US, states are increasingly introducing requirements for data center projects to pay their own way and cover costs of upgrading electrical and water infrastructure in the region.
Some states are even enacting pauses on new projects, adding another layer of complexity to build-out plans.. More in Cloud & Hyperscale. 22 Apr 2026.
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21 Apr 2026
