Meta and Microsoft drive $850 billion surge in data center leases for AI infrastructure

Meta, Microsoft lead $850 billion boom in data center leases

Tech giants Meta and Microsoft are pouring billions into future data center leases, pushing industry-wide commitments past $850 billion. Meta alone pledged an additional $79 billion, signaling massive AI infrastructure investment. Microsoft also added over $41 billion, despite capacity constraints. This surge highlights sustained, long-term spending on crucial tech infrastructure like semiconductors and energy. Meta Platforms and Microsoft each committed tens of billions of dollars in additional data center leases in their most recent quarters, adding to the massive sums the industry is spending on artificial intelligence. Those pledges helped push overall commitments to future data center leases to more than $850 billion among the largest cloud computing companies. These obligations have continued to climb over the last year as tech giants work to expand their fleet of server farms, according to a Bloomberg analysis of regulatory filings. The future costs, which come on top of active leases, won't appear on companies' balance sheets until they begin making payments on them. They're generally tied to data centers, but can also include facilities such as offices or warehouses. Some leases contain clauses that let companies escape future obligations under certain conditions. By far the biggest spender in the quarter was Meta. The social media giant added $79 billion in new commitments -- a 76% increase over the prior period, bringing the total to $182.9 billion as of March 31. Chief executive officer Mark Zuckerberg has said his company will spend hundreds of billions of dollars on AI infrastructure by the end of the decade. Microsoft was the runner-up, adding more than $41 billion in commitments to $196.6 billion. The software giant continues to be held back by a lack of data center capacity after taking a pause on its leasing activity through much of 2025. Earlier this week, Microsoft announced a massive server farm project in west Texas in partnership with Chevron Corp. Meta and Microsoft declined to comment. By contrast, Oracle's future-dated leases slightly declined from the prior quarter. But the company had already signed leases for many of the large sites needed for a massive contract with OpenAI, and it still leads in future spending commitments. Amazon added $10 billion in lease commitments in the quarter, less than half the amount signed in the prior period. CoreWeave Inc.'s future commitments have largely been flat over the last two quarters. The overall pool of $850 billion in future lease commitments will largely be paid out over the next two decades, pointing to steady continued spending on data center inputs such as semiconductors and energy.

Big tech spending on data centers balloons to $850B, with Meta and Microsoft investing tens of billions

Meta and Microsoft are leading the pack of tech giants that are shoveling money into artificial intelligence data-center leases - each committing tens of billions of dollars in their most recent quarters, according to a report. The new agreements helped lift total future data-center lease commitments among the largest cloud-computing companies to more than $850 billion, Bloomberg reported. The obligations have continued to rise over the past year as tech firms build out server farms to power an expected boom in AI use in coming years. The lease commitments will largely be paid out over the next two decades, meaning spending on data center necessities like semiconductors and energy show no signs of slowing in the face backlash from some parts of the country. Meta accounted for the biggest increase in data-center investment. As of March 31, it had reportedly accumulated $182.9 billion in future lease obligations after adding $79 billion during the quarter - a 76% spike from the prior period. Meta CEO Mark Zuckerberg has said he intends to invest hundreds of billions of dollars in AI infrastructure before the decade ends. Microsoft's future lease commitments rose by more than $41 billion, reaching $196.6 billion, according to Bloomberg. The company has been constrained by limited data-center capacity after scaling back its leasing through much of 2025. Earlier this week, Microsoft unveiled a massive data center development in west Texas in partnership with Chevron. Oracle was one of the few exceptions to the trend. Its future lease commitments edged lower from the previous quarter. Even so, the company remains the largest holder of future spending commitments after previously securing many of the large sites needed to support a major contract with OpenAI. The obligations, which are separate from current leases, typically stay off balance sheets until payments begin. Although they are mainly associated with data centers, they may also cover properties such as office buildings and warehouses. Certain agreements include provisions that can relieve companies of future obligations under specified circumstances. The Post has sought comment from Meta and Microsoft.