Microsoft is racing to build data centers as quickly as possible and reported on Wednesday, January 28, that it added nearly 1 gigawatt of power in the last three months of 2025. That’s enough to power nearly 800,000 homes.
The company is “adding capacity as quickly as we can,” said Amy Hood, chief financial officer for Microsoft. During its earnings call, CEO Satya Nadella highlighted its “first of its kind” AI superfactory, which it completed last year. The project links Microsoft’s data centers in Wisconsin and Atlanta, about 700 miles apart, using a high-speed fiber-optic network.
By connecting these facilities through an AI Wide Area Network (AI-WAN), Microsoft can run them as a single system. This means each data center contains hundreds of thousands of Nvidia GPUs that share workloads in real time, and AI tasks can be processed more efficiently.
Still, Microsoft’s demand for cloud and AI continues to exceed its supply. Microsoft reported its capital expenditures (CapEx) for the quarter ending Dec. 31, 2025, were $37.5 billion, a 66% increase year-over-year, mostly driven by data center growth. The company said it would increase expenses this year, but did not offer a specific amount. Data centers remain a buzzy topic in the energy industry, and we’ll continue to discuss them in the RBN blogosphere. See: I Know Places.
