Microsoft Invests Over $130 Billion in Data Center Leases

Microsoft has signed data center lease agreements worth over $130 billion, comparable to the annual revenue of Ukraine's state budget for 2026. CEO Satya Nadella announced plans to double data center capacity in the next two years. In the second quarter, the company launched 31 new data centers, totaling 88 for the entire fiscal year. New contracts increased Microsoft's data center commitments by more than two-thirds from March to June. The company's shares rose by 9% in after-hours trading, despite a decline in investor interest in AI companies. Microsoft's capital expenditures in the second quarter increased by 70% to $41 billion, reflecting a 23% decrease in free cash flow to $19.6 billion. The company's total revenue for the quarter was $90 billion, with net income rising by 31% to $35.8 billion. The volume of future contracted revenues reached $678 billion, up $51 billion from the previous quarter. Microsoft also reported that OpenAI generated $24.1 billion in revenue over the past year.