Microsoft faces cloud capacity challenges due to rising AI workloads, impacting Azure resources, CFO Amy Hood reported. Despite a 21% increase in cloud revenue to $40.9 billion, Azure struggles with power and space constraints. The company is investing $80 billion in AI data centers, having doubled its capacity over three years. Azure bookings grew 67%, driven largely by OpenAI's needs, which Microsoft plans to address by aligning capacity with demand by mid-2025.
https://www.ciodive.com/news/microsoft-azure-cloud-capacity-constraints-openai/738810/