Microsoft’s latest move has sent the new darlings of computing power tumbling first.
According to Bloomberg, Microsoft is tightening oversight of new cloud data center projects with Nebius, IREN, Nscale and others, dropping projects it considers risky and discussing internally whether to sign new cloud service agreements. People familiar with the matter said some recent issues involved wiring at IREN’s data center under development in Texas. The two sides agreed last week to revise the schedule, and completion could be delayed by weeks or even months. A Microsoft spokesperson said adjusting plans as circumstances warrant is standard practice in managing large infrastructure projects, while IREN declined to comment. IREN and Nebius shares both fell about 20% on Thursday.
Scenario to watch 1: If more customers defer orders or renegotiate contracts, that would strengthen evidence that the pace of computing power orders is slowing. Scenario to watch 2: If the logic of miners financing expansion through rising crypto prices weakens, the coins they hold could become a source of forced selling pressure.
Are you more focused on what happens next with customers deferring orders, or on changes in miners’ financing chains?
Source: PANews
Image 1: Microsoft tightens oversight of new cloud projects with IREN, Nebius and others · Screenshot of the source page
Image source: https://www.panewslab.com/zh/articles/01a1ac88-c30b-7576-b40e-9a62b2cce0be
According to Bloomberg, Microsoft is tightening oversight of new cloud data center projects with Nebius, IREN, Nscale and others, dropping projects it considers risky and discussing internally whether to sign new cloud service agreements. People familiar with the matter said some recent issues involved wiring at IREN’s data center under development in Texas. The two sides agreed last week to revise the schedule, and completion could be delayed by weeks or even months. A Microsoft spokesperson said adjusting plans as circumstances warrant is standard practice in managing large infrastructure projects, while IREN declined to comment. IREN and Nebius shares both fell about 20% on Thursday.
Scenario to watch 1: If more customers defer orders or renegotiate contracts, that would strengthen evidence that the pace of computing power orders is slowing. Scenario to watch 2: If the logic of miners financing expansion through rising crypto prices weakens, the coins they hold could become a source of forced selling pressure.
Are you more focused on what happens next with customers deferring orders, or on changes in miners’ financing chains?
Source: PANews
Image 1: Microsoft tightens oversight of new cloud projects with IREN, Nebius and others · Screenshot of the source page
Image source: https://www.panewslab.com/zh/articles/01a1ac88-c30b-7576-b40e-9a62b2cce0be
