Bloomberg Intelligence Microsoft Forecasts Show Data Center Crunch Persisting Into 2026
Oct 10, 2025
Microsoft faces a persistent data center crunch, with shortages impacting cloud growth and AI infrastructure. Analysts discuss how this affects spending and margins in tech. Meanwhile, Stellantis feels pressure from proposed tariffs due to its reliance on Mexican production, prompting potential reshoring. In retail, strong demand is seen in hardlines like beauty and sports goods, despite economic uncertainties. Loyalty programs and unique products are key for retailers to keep customers engaged in a competitive market.
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Data-Center Crunch Extends Into 2026
- Microsoft expects a data-center capacity crunch to persist into 2026, pressuring cloud growth and margins.
- That shortage will boost demand for third-party AI infrastructure providers like CoreWeave and Oracle.
Prepare For Broad AI Infrastructure CapEx
- Expect higher CapEx across major cloud players as they scramble to add capacity and serve AI demand.
- Position for beneficiaries across chips, cooling, and data-center services that support the build-out.
AI Build-Out Is A Multi-Year Process
- The AI data-center build-out is still in early innings and will span years because facilities take long to permit and construct.
- Anurag expects this conversation to persist for at least five to seven years, affecting long-term demand.