Microsoft plans to reduce its neocloud partners while prioritising its own data centres, CNBC reported on 6 November. Microsoft reported $45.2 billion in capital expenditures and finance leases for its latest quarter. The company is still evaluating which outside suppliers to retain, two people familiar with the confidential discussions said.
Two people said Microsoft had opted not to renew a deal with Oracle. Its other recent neocloud partners include CoreWeave, Nebius, Chronoscale, IREN, Lambda and Nscale. Microsoft’s spokesperson told CNBC that the company reviews its infrastructure investments against customer demand. AI Affairs previously reported Microsoft’s exit from an Nscale data-centre deal in Essex.
Microsoft finance chief Amy Hood said in October that delays to some GPU cloud contracts until the first half of 2027 had affected Azure growth. CoreWeave said when it went public in 2025 that Microsoft accounted for 62% of its 2024 revenue.
IREN said its capacity for Microsoft is expected to come online in January or February 2027 rather than 2026, after Microsoft requested a networking equipment upgrade, CNBC reported.
