Satya Nadella

“We will increase our total AI capacity by over 80% this year [fiscal 2026], and roughly double our total datacenter footprint over the next two years, reflecting the demand signals we see.”

Satya NadellaCEO

Chairman and CEO, Microsoft

Fiscal 2026 ended June 30, 2026, but Microsoft never disclosed a total AI capacity figure to check the 80% claim; on the July 29, 2026 FY26 Q4 call Nadella said Microsoft added 88 new datacenters over the year and roughly a gigawatt of capacity in the quarter, and reiterated being 'on track to roughly double our overall capacity in just two years.'

“Just this quarter, we announced the world's most powerful AI datacenter, Fairwater in Wisconsin, which will go online next year and scale to two gigawatts alone.”

Satya NadellaCEO

Chairman and CEO, Microsoft

Microsoft announced on June 23, 2026 that the first Fairwater facility in Mount Pleasant, Wisconsin was complete and fully operational — ahead of the year-end deadline — while the campus build-out toward two gigawatts continues, with the adjacent second facility scheduled for 2028.

“We will increase our total AI capacity by over 80% this year, and roughly double our total datacenter footprint over the next two years, reflecting the demand signals we see.”

Satya NadellaCEO

Chairman and CEO, Microsoft

Microsoft has reiterated the two-year doubling target on subsequent calls, saying in July 2026 that it added 88 datacenters during fiscal 2026 and about a gigawatt of capacity per quarter and remains 'on track.'

“All up, our AI business is on track to surpass an annual revenue run rate of $10 billion next quarter, which will make it the fastest business in our history to reach this milestone.”

Satya NadellaCEO

Chairman and CEO, Microsoft

On the January 29, 2025 FY25 Q2 results, Microsoft announced its AI business had surpassed an annual revenue run rate of $13 billion, up 175% year-over-year — comfortably above the $10 billion milestone Nadella forecast for that quarter.