Hyperscaler / Cloud Provider
Redmond-based technology company operating Azure, the second-largest cloud platform globally. The largest single investor in AI infrastructure as of 2025, with a committed capex program targeting 4+ GW of new data center capacity by 2027.
Data Center Footprint
Microsoft operates more than 400 data center facilities across 70+ Azure regions worldwide. The company added 1 GW of new capacity in a single quarter in FY2026 and is on track to nearly double its global footprint by 2027. Northern Virginia and Texas Azure regions were operating under capacity restrictions through mid-2026 due to sustained demand. Microsoft is scaling multi-gigawatt AI campuses across the U.S. with parallel expansion in India, Southeast Asia, Europe, and the Middle East.
Energy Strategy
Microsoft signed a 20-year power purchase agreement with Constellation Energy to purchase output from the restarted Three Mile Island Unit 1 reactor in Pennsylvania. The 835 MW reactor shut down in 2019 and is undergoing a $1.6 billion refurbishment, supported by a $1 billion federal loan guarantee. Restart is targeted for 2027. The deal is structured to deliver dedicated nuclear power to Microsoft's data center operations.
In March 2026, Microsoft and Nvidia announced an AI-powered collaboration to accelerate the full nuclear plant lifecycle — permitting, design, construction, and operations. Using Microsoft Azure and Nvidia Omniverse, PhysicsNeMo, and Earth-2 tools, early adopter Aalo Atomics reported a 92% reduction in permitting workload, saving an estimated $80 million annually. The initiative could shorten nuclear project timelines by years at a time when the industry needs new capacity urgently.
Beyond nuclear, Microsoft is procuring large-scale renewables across its global portfolio. The company has set a goal to be carbon negative by 2030 and to remove all historical carbon emissions by 2050. Renewable PPAs and energy matching programs support its near-term clean energy targets while the nuclear buildout matures.
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