Microsoft is expanding its data center capabilities with a new AI "super factory" in Atlanta. This facility will enhance its Fairwater network, housing Nvidia GPUs and facilitating AI model training for both Microsoft and OpenAI. The company aims to double its data center footprint in the next two years.

Nvidia, Microsoft, BlackRock, and Elon Musk's xAI are part of a consortium that will acquire Aligned Data Centers for $40 billion, marking the largest global data center deal to date. The partnership aims to enhance AI infrastructure investment, with Aligned currently operating 50 campuses and over 5 gigawatts of capacity. The deal is anticipated to close late next year, pending regulatory approvals.

Amazon has decided to scale back its ambitious AI data center plans, following a similar retreat by Microsoft. The move reflects the growing caution in the tech industry regarding the rapid expansion of cloud infrastructure amid economic uncertainties and changing market demands.