Microsoft delays neocloud deals over delays and costs at IREN, Nebius, Nscale
Microsoft is scaling back its support for neocloud providers after delays and cost overruns at projects by IREN, Nebius Group, and Nscale Plc. The company has tightened oversight of some data center projects, stepped away from risky ones, and is debating whether to sign new neocloud deals, according to people familiar with the matter. Chief Financial Officer Amy Hood mentioned these issues…
Key points
- Microsoft is reviewing or halting neocloud deals with **IREN**, **Nebius**, and **Nscale** due to delays and cost concerns
- Cabling issues, a generator fire, and hardware delays at an **IREN** Texas site pushed back timelines by weeks or months
- **Amy Hood** (Microsoft CFO) has mentioned third-party capacity delays on three earnings calls
Microsoft Sours on Neoclouds Amid Data Center Delays, Costs
finance.yahoo.com · 5 November 2026
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