Over the last six months, Microsoft has “walked away” from pending data center leases with third-party developers in the U.S. and Europe totaling 2 gigawatts of capacity, TD Cowen analysts wrote in a note on Wednesday. The note said Microsoft has also “deferred and canceled existing data center leases” in the two regions in just the past month.

Microsoft has walked away from data center projects in the US and Europe to the tune of 2GW, said TD Cowen analysts. First reported by Bloomberg, the cancelations follow previous speculation from TD Cowen that the cloud giant had walked away from 200MW of data center developments and leases in February 2025.

Microsoft Corp. has walked away from new data center projects in the US and Europe that would have amounted to a capacity of about 2 gigawatts of electricity, according to TD Cowen analysts, who attributed the pullback to an oversupply of the clusters of computers that power artificial intelligence.