Microsoft targets 38GW data centre capacity by 2032, tripling current footprint

Microsoft plans to expand its data-centre capacity to roughly 38 gigawatts by 2032, more than triple its current 12GW, according to a Bloomberg News report. Only about 2GW of its existing capacity is dedicated to AI-specific chips, a share expected to rise to about a third of the 2032 target. The co

Microsoft plans to build out its data-centre capacity to about 38 gigawatts by 2032, more than triple its current footprint, Bloomberg News reported on 10 Sept, citing people familiar with the matter.

According to the report, only about 2 gigawatts of the company's current 12-gigawatt capacity is centred on AI-specific chips. That share is expected to grow to about a third of the 38 gigawatts it plans to have online by the end of the decade.

Technology companies have been pouring billions of dollars into data centres to power generative AI services such as ChatGPT and Copilot, which require huge amounts of computing power. In July, Microsoft forecast stronger-than-expected cloud growth, offering fresh evidence that its massive AI investments are beginning to pay off and helping ease investor concerns that heavy spending on data centres and computing infrastructure could outpace demand.

Microsoft expects capital expenditures of US$50 billion for the fiscal first quarter of 2027 and US$175 billion for the 2026 calendar year. The company is also planning to spread long-term leases on data centres over 25 years rather than 15, a shift that has the effect of lowering its annual reported capital expenditures.

Microsoft did not immediately respond to a Reuters request for comment.