Microsoft's Fairwater AI Data Centers Driving Azure Growth, UBS Says

MT Newswires Live01-24 00:15

Microsoft's (MSFT) Fairwater artificial intelligence data centers in Atlanta and Wisconsin are key to the near-term growth story for Azure, UBS Securities said in a Thursday note.

UBS said it saw no signs of material delays, with the Fairwater Wisconsin expected to begin going live in early 2026, with consensus estimates for capacity ramping in phases to reach about 500 megawatts by mid-summer and up to 1 gigawatt by the end of 2026, according to the report.

The brokerage said it raised its constant-currency Azure growth outlook for the June 2026 quarter to 37% from 35%, noting its previous forecasts were too conservative.

The firm added that the volume of graphics processing unit capacity set to come online suggests consensus capital spending forecasts for fiscal 2027 may be overstated.

UBS maintained its buy rating on the stock and trimmed its price target to $600 from $650.

Shares of Microsoft were up 4% in recent Friday trading.

Price: 465.32, Change: +14.45, Percent Change: +3.20

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