Microsoft Corp. has canceled some leases for US data center capacity, according to TD Cowen, raising broader concerns over whether it’s securing more AI computing capacity than it needs in the long term.

TD Cowen noticed Microsoft doing something strange on Friday. The Open AI partner and tech giant appeared to be cancelling data center leases. According to the market analysts, this is part of a wider pattern. TD Cowen said Microsoft had an “oversupply” problem. It’s another datapoint that points to Big Tech’s nervousness around its big bet on AI.

Microsoft, in an oversupply position, means the company has more data center capacity than it currently needs, according to TD Cowen.

Microsoft is canceling data center leases in a sign of a possible oversupply as OpenAI looks elsewhere for its infrastructure.

Investing.com-- Microsoft Corporation (NASDAQ: MSFT) has cancelled data center leases with at least two operators in the U.S. and that the company had also scaled back plans for international spending, according to analysts at TD Cowen. Shares in Microsoft were marginally higher in premarket U.S. trading on Monday.

Skepticism has been growing among investors over the billions of dollars U.S. tech firms have been channeling into AI infrastructure due to slow payoffs and breakthroughs at Chinese startup DeepSeek,

An analyst note flagging a possible slowdown by Microsoft in leasing data center capacity grabbed the market's attention on Monday, lending credence to skepticism among investors worried that the AI-led stock-market boom might be running out of steam.