Microsoft axes AI deal in setback for UK data centre pioneer

The UK's CMA proposed designating Microsoft with strategic market status for its business software, including Microsoft 365, Windows, and Copilot, citing concerns over bundling and competition. The move could impact licensing, pricing, and bundling practices, with a final decision expected by February 2027. Microsoft defends its products as open and interoperable.

Microsoft and Health-ISAC seized domains linked to three Chinese-language cybercrime services, YAM Store, CoGUI, and Iron Man, which sent over 1 billion phishing messages. The services targeted 75,000 organizations, including Microsoft customers, in 150+ countries, generating millions for operators. The investigation involved multiple global partners and led to the disabling of 20,000 accounts and blocking 100,000 fraudulent domains.

NiSource and Microsoft agreed to a 20-year power deal for Microsoft's data center in La Porte, Indiana. Starting in 2028, the agreement will add 1,100 megawatts of power and 600 megawatts of battery storage. Microsoft will fund new power generation and transmission equipment. NiSource estimates $1.75 billion in savings for existing customers over the contract's lifetime.

Bank of America strategist Sebastian Raedler warns AI investors may lose money despite tech success, citing historical capital cycles. Hyperscaler capex expectations rose from $330B to $1T. NVIDIA (NVDA) fell 1.43%, Microsoft (MSFT) dropped 1.93%, and other tech stocks declined. Token prices fell 50%, pressuring revenues. Microsoft's capex reached $115.95B, while free cash flow dropped to $66.99B.

The UK's Competition and Markets Authority proposed designating Microsoft (MSFT) as having Strategic Market Status in its Business Software Ecosystem, potentially affecting how it bundles products like Excel and Copilot AI. The CMA noted Microsoft's dominant position and potential barriers for competitors, while Microsoft claims its products are open and interoperable. The CMA will take final decisions by February 13, 2027. MSFT shares closed 1.93% lower at $529.05 on Friday.

The U.S. is investing up to $4.4B to restart three shuttered nuclear plants, including Palisades (MI), Crane (PA), and Duane Arnold (IA), to meet rising energy demand. The plants will provide 2.25GW of carbon-free electricity, with contracts from Big Tech firms like Google and Microsoft for data centers. Restarting is seen as quicker and cheaper than building new reactors, but experts warn of safety risks and climate change impacts.