Microsoft drops 700MW Nscale option, tightens neocloud oversight
Microsoft kept its 240MW Nscale lease in Ward County, Texas, but is sending staff to check Nebius and Iren projects.
Microsoft has declined to exercise an option to lease up to 700MW of additional data center capacity from Nscale at a facility in Ward County, Texas, according to aitimes.com. Nscale said the option covered 500MW of capacity.
The company's existing 240MW lease with Nscale in Ward County remains in place. Nscale said the decision not to exercise the option does not affect its total contract backlog of about $103 billion.
Microsoft has also sent staff to some Nebius and Iren data center projects to check compliance with its requirements and regulations. At an Iren data center in Texas, there have been network cabling installation problems, a generator fire and equipment delivery delays.
Some infrastructure deliveries to Microsoft could slip from weeks to months because of requested network design changes.
Microsoft said its infrastructure strategy is to flexibly combine its own data centers, leased facilities and third-party partnerships.
Earlier Nscale contracts
Last year Microsoft signed a contract with Nscale to lease about 240MW of computing capacity at the Ward County data center. The decision not to exercise the option was made a few months before Nscale filed for an IPO in September of last year. Nscale maintains its contracts with Microsoft in Portugal and Norway.
Quick answers
How much capacity did Microsoft decline to lease from Nscale?
Microsoft declined an option for up to 700MW of additional capacity at Nscale's Ward County, Texas facility; Nscale said the option was for 500MW.
Does Microsoft still lease capacity from Nscale in Texas?
Yes. Microsoft's existing 240MW lease with Nscale in Ward County remains in place.
Why is Microsoft sending staff to Nebius and Iren sites?
To check compliance with its requirements and regulations, according to aitimes.com.