Microsoft (MSFT) plans to expand its data center footprint again, proposing a new facility on a 237-acre site in Lowell Township, Michigan. The move is a continuation of the Windows developers’ efforts to continue investing in the AI bubble. Microsoft has already committed to spending more than $80B in fiscal 2026 on AI-related infrastructure, underscoring how central data center capacity has become to the company’s growth strategy.

On its first-quarter fiscal 2026 earnings call, CEO Satya Nadella said Microsoft is operating the most expansive data center fleet for the AI era and is adding capacity at an unusually fast pace. Management indicated that total AI capacity is expected to rise by more than 80% this year, with the company planning to roughly double its overall data center footprint over the next two years as demand signals continue to strengthen.

Besides the proposed new Microsoft data center in Michigan, Microsoft’s Edge AI and Azure Cloud Computing platforms have also given the company a huge boost. Both have worked in tandem thanks to the Windows developers’ AI investing that has reaped immense benefits. Additionally, the company’s October quarterly results showed revenue of about $78 billion and roughly 40% growth in Azure and cloud services.

Furthermore, Microsoft MSFT recently called on Osmos to augment its AI lineup. The company is also bringing in a new communications head with clear Xbox familiarity, putting it in pole position for continued success in 2026. Microsoft’s AI push in the past year hasn’t gone unnoticed. Microsoft (MSFT) had a successful 2025, with the company reaching a $4T market cap and its stock up 15% YTD. While the stock has slipped since hitting a new ATH in November, Wall Street still suggests that the best is ahead, especially if it continues this AI push and the Osmos deal proves fruitful.

Numerous Wall Street analysts have upped their forecasts for Microsoft (MSFT) stock in 2026. Wedbush’s Dan Ives calls Microsoft a “core winner” for 2026, arguing that Azure could move from pilots to broad enterprise deployments as CIO budgets shift. Evercore ISI’s Julian Emanuel adds a cautionary note but says systemic risks tied to the AI trade remain limited, given healthy hyperscaler balance sheets and muted cross-holdings.