Lease Cancellations & Pauses Globally,嘛噶

• **Lease Cancellations Pauses Globally **
  Analysts from TD Cowen have reported that Microsoft has:

  • Canceled data center leases in the U.S., totaling “a couple of hundred megawatts,” and pulled back on converting Statements of Qualifications (SOQs) into formal leases.ReutersWinBuzzerReddit

  • Withdrawn from preliminary commitments exceeding 1 gigawatt in the U.S. and Europe over the past six months.Business InsiderReddit

  • Paused or deferred construction and planning for key projects, including:

    • A $3.3 billion expansion in Mount Pleasant, Wisconsin (second phase paused while the first continues).Data Centre CentralFinance CommerceRacine County Eye

    • A $1 billion project in Licking County, Ohio—Microsoft is slowing or pausing early-stage work and repurposing some land.AP NewsABC NewsThe Washington Post

    • Other developments in Indonesia, the UK (between London and Cambridge), Australia, Jakarta, Chicago, Wales, and Europe are facing delays or cancellations.Capacity MediaPhronews -Data Center Dynamics

• Microsoft’s Perspective
  Microsoft defends its approach as strategic adjustments rather than a retreat:

  • It emphasizes an $80 billion investment in AI and cloud infrastructure remains on track.Data Center DynamicsReutersBusiness InsiderReddit+1

  • The company characterizes pausing projects as part of operational agility and long-term planning:
    “We’ve always been making adjustments to what pace we build… all through the last 10, 15 years.”The RegisterBusiness Insider

  • They stress that the first phases of major projects, like Wisconsin’s, are still progressing and expected to deliver on time.Data Centre CentralFinance CommerceRacine County EyeReddit+1

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Does This Indicate Overcapacity?

Signs Pointing Toward Overcapacity:

• Analysts interpret lease cancellations and deferred projects as signs of oversupply relative to current demand forecasts.ReutersBusiness InsiderMarketWatchWinBuzzerReddit

• The shift in Microsoft’s partnership with OpenAI—allowing it to source infrastructure from other providers—may have reduced immediate compute demand.Business InsiderAP NewsTHE DECODER

• Rapid construction across the hyperscaler industry has prompted warnings of a data center “bubble.” For example, Alibaba’s Joe Tsai warned of overbuilding without concrete demand.Data Center Dynamics

• Indicators of Potential Overcapacity:

• Lease cancellations, deferred projects, and reducing international buildouts.

• Slower immediate compute demand due to partnership changes with OpenAI.

• Warnings of speculative overbuilding in the data center market.