The move may reflect concerns about whether it’s building more AI computing than it will need over the long term, TD Cowen said in a report.

Microsoft has scrapped leases for sizeable data center capacity in the U.S., suggesting a potential oversupply at the tech giant as it builds out artificial intelligence infrastructure to meet a possible surge in demand,

Microsoft has canceled some leases for US data center capacity, according to TD Cowen, raising broader concerns over whether it’s securing more AI computing capacity than it needs in the long term. TD Cowen analyst Michael Elias,