Microsoft Warns of AI Service Disruptions Amid Data Center Delays

Microsoft expects AI service disruptions this quarter as soaring demand strains data center capacity. Learn what it means for users and businesses.
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Microsoft Warns of AI Service Disruptions Amid Data Center Delays
Microsoft Warns of AI Service Disruptions Amid Data Center Delays Facing a surge in demand for artificial intelligence services, Microsoft expects AI capacity constraints in the upcoming quarter. Users and businesses relying on Microsoft Azure AI and related cloud solutions might experience temporary service disruptions starting as early as June 2025. During Microsoft's fiscal Q3 2025 earnings call, Executive Vice President and CFO Amy Hood warned that soaring demand has outpaced the company's ability to bring new data centers online fast enough. As a result, organizations heavily dependent on AI infrastructure could encounter minor performance slowdowns or delays in service availability, sparking concerns across industries increasingly reliant on Microsoft's AI technologies.                 Image Credits:Aleksander Kalka/NurPhoto / Getty Images Why Microsoft Is Struggling to Meet AI Demand According to Hood, the company had originally aimed to balance its AI infrastructure su…