Microsoft data center construction projects are showing signs of delays according to satellite imagery analysis reported by Business Insider. Market research firm Aterio's satellite analysis revealed problems at two data center projects involving neocloud companies Iren and Nevius that are partnering with Microsoft. Iren is building four data centers in Texas under a $9.7 billion contract with Microsoft, with satellite photos taken on the 21st of last month showing the Horizon 4 building still lacking emergency generators and cooling equipment. The equipment shortages follow a pattern of construction challenges affecting multiple Microsoft infrastructure partnerships across the industry.
Iren's Texas Data Center Project Faces Year-End Completion Risk
According to Aterio's satellite analysis, the Horizon 4 building in Iren's Texas project still lacked emergency generators and cooling equipment in satellite photos taken on the 21st of last month. Business Insider analyzed this indicates the year-end completion schedule may face disruption. Iren previously disclosed that completion of the first building, Horizon 1, which Microsoft acquired in August, was delayed due to equipment shortages.
Nevius New Jersey Project Shows 140 Megawatts Capacity Delay Risk
Data center operator DataOne is developing a second project in New Jersey under a $17.4 billion contract between Nevius and Microsoft. Aterio analyzed that approximately 140 megawatts of the project's planned power capacity may be carried over to next year.
Microsoft Terminated Enscale Contract Over Power Supply Delays
These potential delay issues also suggest broader difficulties across the industry. Microsoft terminated a contract with another neocloud company, Enscale, in October citing power supply delays as the reason.
FAQ
What problems did satellite analysis reveal at Microsoft data center projects?
Aterio's satellite analysis found that Iren's Horizon 4 building in Texas still lacked emergency generators and cooling equipment in photos taken on the 21st of last month, and approximately 140 megawatts of planned capacity in the Nevius New Jersey project may be delayed to next year.
Why did Microsoft terminate its contract with Enscale?
Microsoft terminated its contract with neocloud company Enscale in October due to power supply delays.
