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Microsoft scales back global AI data center expansion plans amid emerging low-cost model trends

  • Microsoft has scaled back on multiple planned data center projects worldwide.
  • The company has halted talks or delayed development of sites in Australia, Indonesia, the U.K., and some states in the U.S.
  • Microsoft has made changes to its data center plans in response to the growth of AI demand and to showcase the flexibility of its strategy.
  • The decision may reflect the emerging trend of low-cost AI model development, challenging the need for massive AI data centers.

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