The software giant has lowered its projected yearly expenditure on artificial intelligence infrastructure by $5B after construction and permitting setbacks at facilities managed by external partners. The reduction targets annual capital spending forecasts following delays at “neocloud” sites, including those linked to IREN and Nebius, whose combined project value with the company reaches $27.1B.
Satellite imagery from Oct 21 indicated missing backup generators and cooling equipment at IREN’s Horizon 4 facility in Texas, while research firm Aterio estimates 140 MW of capacity at a Nebius project in New Jersey may not be online until 2027. IREN shares have fallen 42% this year as investors consider whether the setbacks will prompt Microsoft to utilize contract clauses to pause or terminate its outsourced compute agreements.