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Microsoft Cloud Revenue Up 22% to $42B with AI Bundling; Meta, Amazon, Google Lead Data Center Boom as China Uses 25% Global Power

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Updated May 6, 2025, 11:29 AM

Microsoft's cloud business has surpassed $42 billion in revenue, reflecting a 22% year-over-year increase driven by strong demand. The company maintains a stable outlook, supported by confidence in its core commercial growth drivers, though management has cautioned that AI service capacity limitations could constrain future growth. Microsoft's consumer AI bundling strategy has boosted Office 365 revenue, but subscriber growth has slowed, raising questions about the long-term implications for its corporate offerings amid potential regulatory scrutiny. Meanwhile, the data center industry is experiencing a resurgence led by major players such as Meta, Amazon, and Google, driven by the expanding AI and cloud computing demands.

This growth is prompting significant challenges including rising energy consumption, supply chain disruptions, and power infrastructure constraints. Globally, data center expansion is accelerating, with China now the second-largest consumer of data center electricity after the United States, accounting for 25% of global data center power usage in 2024. Analysts highlight that the AI infrastructure boom is entering a new phase, with transformative changes expected in compute architecture and data center design. Despite Microsoft's ambitions in AI, its infrastructure growth is reportedly lagging behind its expansion plans.

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#Microsoft #Office 365 #Meta #Amazon #Google #China #United States #AI

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Sources

theinformation.com(2)carbonbrief.org business-standard.com emarketer.com

Carbon Brief

@CarbonBrief

Interpretation: How China is coping with the growing demand for data center energy | Yuan Ye In 2024, the electricity consumption of data centers in China will account for 25% of the total electricity consumption of global data centers, making it the second largest consumer of electricity in the world after the United States. Click to read the Chinese translation: https://t.co/QkiUJzCzs8 https://t.co/goIkhxnflJ

Business Standard

@bsindia

Global data centre expansion accelerates to meet AI and cloud demands; challenges include rising energy needs, supply chain disruptions, and power infrastructure constraints #MoodyRating #DataCentre #AI #ArtificialIntelligence https://t.co/yPSDrXgB6d