Microsoft Commits $60B to Neocloud Providers for AI Compute Expansion
Microsoft is allocating over $60 billion to neocloud providers to address surging demand for AI compute resources. The move comes as internal teams and enterprise customers outstrip the capacity of traditional data centers. A $23 billion agreement with UK-based Nscale secures Microsoft control of approximately 200,000 Nvidia GB300 GPUs across four international locations, establishing early dominance in AI infrastructure.
Two additional deals this week further cement Microsoft's position. IREN Ltd. will provide $9.7 billion worth of Nvidia GPU access through 2026, with Dell Technologies supplying $5.8 billion in hardware. A separate multibillion-dollar contract with Lambda Labs adds to Microsoft's growing portfolio of five-year locked commitments, creating a stable foundation for Azure's AI service expansion.
