Microsoft Extends Data Center Life to Manage AI Capex

Microsoft is accelerating investment in AI and cloud infrastructure as Azure demand exceeds available data-center capacity. Quarterly capital expenditure reached about $41 billion, with much of the spending directed toward short-lived CPU and GPU assets. Beginning in fiscal 2027, Microsoft plans to extend the estimated useful lives of data centers and office buildings and shift more future data-center leases to operating-lease treatment, changing how some infrastructure costs appear in reported capex. The changes do not reduce the stated underlying investment need, but may make comparisons of reported spending less straightforward.