Microsoft Plans 38GW Of Data Center Capacity By 2032
Sep 11, 2026 Posted by Abdul-Rahman Oladimeji Published in Microsoft Azure
Microsoft plans to more than triple its data center capacity over the next five years, targeting 38GW by 2032, up from its current 12GW. The capacity will combine Microsoft-owned facilities with leased capacity from third-party providers, including neoclouds such as CoreWeave, Nscale, Lambda, Iren, and Nebius. By November 2025, Microsoft had reportedly spent around $60 billion on data center infrastructure.
Microsoft’s capital spending has continued to rise, from $55.7 billion in 2024 to $115.9 billion and $145.3 billion in the following years, with $175 billion projected for 2027. The company declined to comment on its data center plans but is developing projects worldwide. It has also stopped using NDAs for data center projects. Microsoft brought 1GW of capacity online in recent quarters and launched 88 data centers in FY2026, including 31 in Q4. To reach 38GW by 2032, it will need to slightly increase its deployment rate to just over 1GW per quarter.
As data center capacity expands rapidly, public opposition and scrutiny are also growing. In the US, more states are requiring data center projects to cover upgrades to local power and water infrastructure, while some have paused new developments, complicating expansion plans.
