The data center supply deficit that Microsoft Corporation is grappling with is expected to endure for a longer period than initially projected. Insiders with knowledge of the situation reveal that Microsoft's internal projections suggest this scarcity will stretch into the first half of 2026, surpassing the previously set time horizon. At present, Microsoft is encountering a dearth of physical space and servers in numerous data center locales throughout the United States. This includes crucial server cluster centers like Northern Virginia and Texas. Consequently, this has led to limitations on new subscriptions for Azure cloud services.

Microsoft has already embarked on extensive data center construction projects, boosting capacity by over two gigawatts in the past year alone. Nevertheless, due to multi-year construction timelines and supply chain snarls, it is still arduous to promptly mitigate the shortage. To tackle this issue, Microsoft is employing a variety of strategies to balance supply and demand. These include guiding customers to other regions with surplus capacity and enacting capacity safeguard measures during periods of high demand.