Thinking about why Microsoft hasn’t built enough data centers to ensure continued profit growth in this sector.
Following the Q2 2026 earnings report, Microsoft’s stock lost nearly 10% of its value. While investors are concerned about an over-reliance on a single client like OpenAI, I wonder why they aren’t building more data centers regardless.
It appears they are still spending heavily on infrastructure, but some argue they aren’t allocating enough capacity to revenue-generating services; instead, they are using these resources for internal R&D. So, the question remains: why didn’t they spend more and build more data centers to compensate for this?
Is it possible they decided to limit spending to avoid looking over-leveraged? Or perhaps they don’t have enough projected business? Or is it a shortage of essential components like chips and electricity? Upon digging deeper, it seems that a shortage of infrastructure essentials is, in fact, the primary bottleneck.
Read more on this here: Why Microsoft Can’t Build Data Centers Fast Enough.