Microsoft tightens oversight of neocloud data center projects, Bloomberg News reports

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Nov 5 : Microsoft tightens oversight of some data center projects from neocloud providers Nebius, IREN and Nscale, Bloomberg News reported on Thursday, citing people familiar with the matter.

Shares of neocloud firms fell in afternoon trading, with Nebius and IREN down more than 13 per cent and CoreWeave down 11 per cent.

Here are more details:

• The Windows maker is stepping away from projects it deems risky and is debating internally whether to sign new neocloud deals, the Bloomberg report said

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• Microsoft is focused on expanding its own data centers rather than adding neocloud deals, though it has not fully ruled them out, the report added

• Microsoft, Nebius, IREN and Nscale did not immediately respond to Reuters' requests for comment

• Investors and data center developers face rising uncertainty in Texas after Gina Hinojosa won the governor's race, with the governor-elect having said she would ban new projects until state lawmakers pass rules for the industry

• Microsoft will not exercise the option to more than double the size of its existing agreement with Nscale to rent more computing power at a Texas data center

• Microsoft pulled out weeks ago of a deal to anchor Nscale's flagship data center in Loughton, Essex, after power connection delays pushed supply into the 2030s

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