Microsoft stock dipped on Monday after investment bank TD Cowen reported the tech giant canceled leases on two data centers in the U.S.
The stock fell 1.8% during Monday’s trade but has since recovered back to its opening price of $404.04, according to MarketWatch data.
Microsoft terminated select leases with at least two private data center operators across multiple U.S. markets, accounting for “a couple of hundred megawatts” of power, according to a copy of TD Cowen’s report as cited by Bloomberg.
For a perspective of how much power that is, 1 megawatt can power 250 homes during peak usage hours, according to the Electric Reliability Council of Texas.
“While we have yet to get the level of color via our channel checks that we would like into why this is occurring, our initial reaction is that this is tied to Microsoft potentially being in an oversupply position,” TD Cowen reportedly wrote.
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