Key facts
- Microsoft is stepping away from data center projects it deems risky and debating internally whether to sign new neocloud deals, per Bloomberg.
- Microsoft will not exercise an option to more than double its existing Nscale agreement for computing power at a Texas data center, per Bloomberg.
- Microsoft pulled out weeks ago of a deal to anchor Nscale's flagship Loughton, Essex data center after power connection delays, per Bloomberg.
- Nebius and IREN shares fell more than 13% and CoreWeave fell 11% in afternoon trading, according to Reuters.
Microsoft has tightened oversight of some data center projects involving neocloud providers Nebius, IREN and Nscale, Bloomberg News reported on November 5, 2026, citing people familiar with the matter. Reuters relayed the report. Microsoft, Nebius, IREN and Nscale did not immediately respond to Reuters' requests for comment.
According to the Bloomberg report, the Windows maker is stepping away from projects it deems risky and is debating internally whether to sign new neocloud deals. Microsoft is focused on expanding its own data centers rather than adding neocloud deals, though it has not fully ruled them out, the report said.
The report said Microsoft will not exercise the option to more than double the size of its existing agreement with Nscale to rent more computing power at a Texas data center. It also said Microsoft pulled out weeks ago of a deal to anchor Nscale's flagship data center in Loughton, Essex, after power connection delays pushed supply into the 2030s.
Shares of neocloud firms fell in afternoon trading, with Nebius and IREN down more than 13% and CoreWeave down 11%, according to Reuters.