Microsoft Plans to More Than Triple Its Global Data Center Capacity to More Than 38 Gigawatts by 2032

Bloomberg reports that Microsoft plans to more than triple its global data center capacity to more than 38 gigawatts by 2032, up from about 12 gigawatts today. As part of the plan, Microsoft announced in June a 20-year power purchase agreement with Chevron to build a co-located, dedicated 2.7-gigawatt natural gas power facility to feed a new Texas data center.

At peak capacity, Microsoft’s network will consume more electricity than the entire state of New York during peak periods. To address public backlash over rising residential utility costs, Microsoft has committed to covering 100% of the localized electricity price increases caused by its facilities rather than letting the public pay the bill.

Microsoft is projected to spend up to $190 billion in calendar year 2026 on total capex, with its overall infrastructure and electricity build-out pacing at $145.3 billion for its latest fiscal year. Third-party reports tracking the cost of electricity build-outs estimate the cost at $15 million to $20 million per megawatt (MW).

While Microsoft contracted 40 gigawatts of renewable energy to meet its annual goals, extreme AI demand has forced the company to consider delaying or abandoning its ambitious “100/100/0” goal, which promised to match electricity use with zero-carbon power on an hourly basis.