Satellite images reveal trouble brewing at Microsoft's AI data center partners

What happened: Microsoft said third-party data center delays contributed to lower-than-expected AI infrastructure spending. Satellite analysis from Aterio points to possible setbacks at IREN and Nebius projects. Key numbers: Microsoft spent $5 billion less than expected on AI last quarter and cut its annual capex forecast by $5 billion. Why it matters: The news sent neocloud stocks tumbling on concerns the young companies can't deliver on their multibillion-dollar promises. Microsoft also axed a deal with Nscale in October due to power-supply delays.

Microsoft said third-party data center delays contributed to lower-than-expected AI infrastructure spending. Satellite analysis from Aterio points to possible setbacks at IREN and Nebius projects.

The news sent neocloud stocks tumbling on concerns the young companies can't deliver on their multibillion-dollar promises. Microsoft also axed a deal with Nscale in October due to power-supply delays.