Microsoft Forecasts Show Data Center Crunch Persisting Into 2026

Microsoft Corp.’s data-center crunch will continue for longer than the company has previously outlined, underscoring the software giant’s struggles to keep up with cloud demand.

Many of Microsoft’s US data center regions are experiencing shortages of physical space or servers, according to people familiar with the company’s internal forecasts. New subscriptions for Azure cloud services are restricted in some crucial server-farm hubs, including Northern Virginia and Texas, through the first half of next year, said the people who requested anonymity to discuss internal forecasts.

That’s a longer time frame than the company has previously outlined. In July, Chief Financial ...