FILE PHOTO: The logo of Microsoft at the 10th edition of the VivaTech technology startups and innovation fair in Paris, France, June 18, 2026. REUTERS/Gonzalo Fuentes//File Photo
FILE PHOTO: The logo of Microsoft at the 10th edition of the VivaTech technology startups and innovation fair in Paris, France, June 18, 2026. REUTERS/Gonzalo Fuentes//File Photo
Nov 5 : Microsoft tightens oversight of some data center projects from neocloud providers Nebius, IREN and Nscale, Bloomberg News reported on Thursday, citing people familiar with the matter.
• The Windows maker is stepping away from projects it deems risky and is debating internally whether to sign new neocloud deals, the Bloomberg report said
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• Microsoft is focused on expanding its own data centers rather than adding neocloud deals, though it has not fully ruled them out, the report added
• Nebius, IREN and Nscale did not immediately respond to Reuters' requests for comment.
• "Our approach to infrastructure is built on flexibility and optionality, combining Microsoft-owned data centers, leased facilities and strategic partnerships with third-party providers to help us bring capacity online reliably and efficiently," a Microsoft spokesperson told Reuters
• Investors and data center developers face rising uncertainty in Texas after Gina Hinojosa won the governor's race, with the governor-elect having said she would ban new projects until state lawmakers pass rules for the industry
• Microsoft will not exercise the option to more than double the size of its existing agreement with Nscale to rent more computing power at a Texas data center
• Microsoft pulled out weeks ago of a deal to anchor Nscale's flagship data center in Loughton, Essex, after power connection delays pushed supply into the 2030s
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