Microsoft’s AI Data Centers Fuel Azure Growth, MSFT Rally Extends to Crypto Adjacents
Microsoft's Fairwater AI data centers in Wisconsin have become a stealth catalyst for its cloud division, with Azure growth outpacing rivals Amazon Web Services and Google Cloud. The 500-megawatt capacity expansion by 2026 positions Microsoft as the only hyperscaler currently monetizing AI infrastructure at scale.
UBS analyst Karl Keirstead notes the absence of rollout delays contrasts sharply with GPU supply chain issues plaguing competitors. This execution advantage has Morgan Stanley forecasting 38% upside for MSFT stock, now branded 'overweight' with a $650 target.
The OpenAI partnership creates indirect crypto exposure. While OpenAI projects $115B in losses through 2029, Microsoft's Azure infrastructure will capture much of this spend. This dynamic mirrors crypto projects like FET, AGIX, and OCEAN that leverage cloud-based AI.
Data center demand from AI and crypto mining (particularly post-ETH Merge) continues converging. Layer-2 tokens like MATIC, ARB, and METIS benefit from Azure's enterprise blockchain solutions, while storage coins FIL and AR compete for hyperscaler partnerships.
