Microsoft issued a serious warning: sell these 3 data center stocks

Artificial intelligence has brought a huge boom in demand for data centres, leading to massive investments in infrastructure. However, recent moves by Microsoft suggest that this growth may not be as limitless as investors have previously thought. In fact, Microsoft has cancelled several data centre leases in the US, raising concerns about future demand for AI infrastructure and the overall slowdown in the data centre market.

According to TD Cowen, Microsoft recently cancelled several data center leases in the US. Analysts said the tech giant terminated agreements with "at least two private data center operators," freeing up several hundred megawatts of capacity. This has led to broader concerns about whether demand for AI computing infrastructure will slow in the long term. However, Microsoft said it remains committed to investing more than $80 billion in capital expenditure, although it may strategically adjust its plans.