Copyright Benzinga
Microsoft Corp (NASDAQ:MSFT) is accelerating its data center expansion with the launch of an artificial intelligence "super factory" in Atlanta—a massive two-story complex designed to link seamlessly with similar hubs across its Fairwater network to deliver enormous computing power. The company plans to double its global data center footprint within two years, with the Atlanta site emerging as one of its most important new facilities. Built specifically for AI training, the Fairwater hub will house hundreds of thousands of Nvidia Corp (NASDAQ:NVDA) GPUs and feature high-speed interconnections with other Microsoft data centers, the Wall Street Journal reported on Wednesday. Also Read: Nvidia Rallies As Microsoft Expands AI Infrastructure In Middle East With US Backing OpenAI, Mistral AI, and Elon Musk's xAI will use the facility alongside Microsoft's own AI model training operations. Microsoft, with a market cap of nearly $3.78 trillion, gained 19% year-to-date. Microsoft spent over $34 billion in capital expenditures during its fiscal first quarter and plans to boost infrastructure investments further next year as part of a broader industry surge—one that's expected to reach $400 billion in AI spending this year. The company says Fairwater's two-story design improves network efficiency and reduces latency, while a liquid-cooling system enables GPUs to be densely packed. The one-million-square-foot Atlanta complex spans 85 acres and consumes about as much water annually as 20 U.S. households. Microsoft is also laying 120,000 miles of fiber-optic cables to link Fairwater locations, enabling data to travel "nearly at the speed of light." Bank of America Securities analyst Brad Sills highlighted renewed momentum in Microsoft's cloud business, driven by strong enterprise demand for Azure security services and ongoing AI adoption. He cited consistent deal activity from channel partners and rising investment in AI and data infrastructure as evidence of the company's growing role in corporate technology roadmaps. Sills identified Azure growth, enterprise Office adoption, and strategic AI infrastructure expansion—including Microsoft's work with Aligned Data Centers, BlackRock Inc (NYSE:BLK) and Nvidia —as key growth catalysts. The analyst projected fiscal 2026 revenue of $322.1 billion and EPS of $15.24. MSFT Price Action: MSFT stock traded 1.25% lower to $502.24 at last check on Wednesday. Read Next: The ‘Big 3’ Tech Playbook: Why Apple, Amazon And Microsoft Keep Winning Photo: Shutterstock
