Microsoft helped spawn the “new cloud” boom. To meet the huge market demand for its cloud services and AI services, the company signed tens of billions of dollars in contracts with emerging data center operators. Today, as New Cloud faces project delays, regulatory hurdles, and high costs, some of Microsoft's key executives are feeling remorseful. People familiar with the matter revealed that Microsoft is strengthening supervision of some Nebius Group NV, IREN Ltd. and Nscale Plc data center projects, withdrawing from projects considered risky, and is also internally discussing whether to sign new cloud deals. This friction was evident during Microsoft's most recent earnings call. At the time, CFO Amy Hood said that delays in delivery of some third-party computing power were disrupting the company's spending plans. This is the third time she has raised this kind of question on an earnings conference call. According to people familiar with the matter, some of the issues that have arisen recently relate to the wiring of a project developed by IREN in Texas. Data center servers are connected to each other through complex fiber networks. A generator fire also occurred in the park in April, and IREN revealed in August that there was a delay in hardware delivery in the area. People familiar with the matter said that IREN and Microsoft managers held talks last week and agreed on a new schedule, which could delay the completion of the project by several weeks or even months.

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