By Casey B. Renner
Publication Date: 2025-11-27 14:30:00
Artificial intelligence may have hit an unexpected snag — there aren’t enough powered data centers to keep up with the machines driving it. And now, Microsoft (NASDAQ:MSFT) has AI chips sitting idle because there’s nowhere to plug them in.
On the “BG2Pod,” a technology and investing podcast hosted by Brad Gerstner and Bill Gurley and featuring OpenAI CEO Sam Altman, Microsoft CEO Satya Nadella said the shortage of power has become the industry’s biggest constraint.
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“The biggest issue we are now having is not a compute glut, but it’s power,” Nadella said. “It’s not a supply issue of chips. It’s actually the fact that I don’t have warm shells to plug into.” The remarks referred to data centers that are incomplete or lack sufficient energy and cooling capacity.
Microsoft has slowed or paused some early-stage data center projects to address those constraints. Microsoft Cloud Operations and Innovation President Noelle Walsh said in an April…