Microsoft (MSFT) Expands Data Center Build-out with an AI Super Factory, Reports WSJ

Core Insights - Microsoft Corporation (NASDAQ:MSFT) is significantly expanding its data center capabilities with the construction of an AI super factory in Atlanta, aimed at enhancing its computing power and infrastructure connectivity [1][2] - The company plans to double its total data center footprint over the next two years and has already invested over $34 billion in capital expenditures during Q1 [2] - Microsoft is part of a larger trend where several tech companies are collectively investing $400 billion into AI initiatives this year, driven by rising demand for AI computing [3] Financial Performance - During its Q1 2026 earnings call, Microsoft indicated an increase in spending on GPUs and CPUs due to accelerating demand and growth in its Remaining Performance Obligations (RPO) balance [4] - The company anticipates that its total spending will increase sequentially, projecting a higher growth rate for FY 2026 compared to FY 2025 [4]