Microsoft Forecasts Show Data Center Crunch Persisting Into 2026

Many of Microsoft’s US data center regions are experiencing shortages of physical space or servers, according to people familiar with the company’s internal forecasts. New subscriptions for Azure cloud services are restricted in some crucial server-farm hubs, including Northern Virginia and Texas, through the first half of next year, said the people who requested anonymity to discuss internal forecasts. In July, Chief Financial Officer Amy Hood said current constraints would continue through the end of 2025.