Meta, Microsoft push data center leases past $850 billion

Meta Platforms ↘ 1.64% and Microsoft ↗ 0.11% each committed tens of billions of dollars in additional data center leases in their most recent quarters, pushing total future lease obligations among major cloud computing firms past $850 billion, according to a Bloomberg analysis of regulatory filings published Tuesday.moneycontrol+1

A Race to Build AI Infrastructure

Meta was the largest spender, adding $79 billion in new commitments during the quarter — a 76 percent increase over the prior period — bringing its total to $182.9 billion as of March 31. CEO Mark Zuckerberg has said the company will spend hundreds of billions of dollars on AI infrastructure by the end of the decade. Microsoft added more than $41 billion in commitments, raising its total to $196.6 billion. Microsoft continues to be constrained by a lack of data center capacity after pausing much of its leasing activity through 2025.moneycontrol

Earlier this week, Microsoft announced a large server farm project in west Texas in partnership with Chevron ↗ 0.24%. Both Meta and Microsoft declined to comment on the figures.moneycontrol

Other Players and the Road Ahead

Oracle ↘ 0.16% leads in total future spending commitments, though its future-dated leases slightly declined from the prior quarter after it had already signed leases for large sites needed for a contract with OpenAI. Amazon Amazon.com, Inc. ↗ 1.63% added $10 billion in lease commitments, less than half the amount signed in the prior period, while CoreWeave ↗ 1.26% has seen its future commitments remain largely flat over the last two quarters.moneycontrol

The $850 billion in aggregate future lease commitments will largely be paid out over the next two decades, pointing to sustained demand for data center inputs such as semiconductors and energy. The spending surge comes as Congress weighs its own response: on Wednesday, a House Energy subcommittee is set to review the Ratepayer Protection Act, which would require data center developers to finance power grid upgrades needed to support their energy consumption.cnbc+1