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Microsoft Rejects Huge Texas Data Center Expansion
5 Nov
Summary
- Microsoft declined an option to expand its contract significantly.
- The rejected deal involved renting computing power in Texas.
- The option would have more than doubled the existing contract size.

As of November 5, 2026, Microsoft has reportedly rejected an opportunity to substantially increase its rental of computing power. The tech giant declined an option to more than double its current contract with Nscale.
This significant decision pertains to a data center facility located in Texas. Sources familiar with the matter indicated Microsoft's choice to pass on the expanded agreement.