An internal forecast by Microsoft (NASDAQ:MSFT) demonstrates data center demand outpacing available capacity until at least 2026, according to Bloomberg.
Due to the rise of artificial intelligence workloads, some of Microsoft’s U.S. data center regions, including Northern Virginia and Texas, are seeing demand outpace capacity, according to the report, which cited people familiar with the issue. This is leading to restrictions related to new subscriptions for Azure. It is expected to continue through the first half of 2026.
This is nothing new, as Microsoft, as well as fellow cloud giants Amazon (AMZN) and Google (GOOG)(GOOGL), have reported similar cloud constraints over the past few quarters.
However, the majority of Azure services in U.S. regions “have available capacity so that existing customers with deployed workloads can continue to grow,” said a Microsoft spokesperson, according to the report.