Microsoft has announced plans to double its global data centre footprint within the next two years, marking one of its largest infrastructure expansions to date. The move highlights the company’s long-term focus on artificial intelligence (AI) and cloud computing as key growth drivers in an increasingly competitive technology landscape.
CEO Satya Nadella revealed the plan during the company’s recent earnings call, citing “strong AI growth” and Microsoft’s ongoing partnership with OpenAI as major factors behind the expansion. He also stated that Microsoft will “boost its AI capacity by more than 80% this year,” according to a report from a common source.
The announcement follows strong quarterly results. For the first fiscal quarter of 2026, Microsoft reported revenue of 77.7 billion dollars, up 18 per cent year on year, with operating income rising 24 per cent to 38 billion dollars. These figures reflect the company’s solid performance driven by AI and cloud adoption, particularly through its Azure platform, even as many enterprises continue to assess measurable returns from AI investments.
This expansion is more than just an infrastructure upgrade. It represents a strategic effort to strengthen Microsoft’s position in the global AI infrastructure race. Competitors such as Google and Amazon are also rapidly growing their cloud and computing networks to meet increasing AI demands. Microsoft’s Azure currently operates around 400 data centres across 70 regions, making it one of the most extensive global cloud networks.
A key part of Microsoft’s AI success has been its collaboration with OpenAI, which Nadella called “one of the most successful partnerships and investments our industry has even seen.” Although OpenAI has recently diversified its cloud infrastructure beyond Azure, Microsoft continues to integrate its advanced models across products and services. Nadella added that both companies would “continue to benefit mutually from each other’s growth across multiple dimensions.”
However, the company’s decision to scale up AI infrastructure spending has prompted short-term investor concerns. Reports indicate that Microsoft’s shares dropped by four per cent following the announcement, reflecting caution over rising costs tied to AI development.
Experts believe the move signals Microsoft’s understanding that the foundation of AI leadership lies in strong, scalable data networks. Data centres now power critical global technologies, from enterprise cloud applications to generative AI systems.
With this massive expansion, Microsoft aims to strengthen its global technology infrastructure, enabling enterprises worldwide to accelerate AI adoption and innovation. The initiative underscores Microsoft’s determination to remain at the forefront of the intelligent computing era.
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