Microsoft Walks Away From AI Data Center Deal, but SemiAnalysis Predicts 50-GW Boom in 2027

Arrow Electronics' Global Enterprise Computing Solutions President Eric Nowak will retire on Dec. 31, 2026, and transition to an advisory role. Rodney Clark, a former Cisco and Microsoft executive, will take over the leadership. Nowak's departure follows Arrow ECS's loss of its Dell enterprise relationship. According to the company, Nowak is retiring for personal reasons.

The U.S. Department of Labor suspended PERM processing for Microsoft, Adobe, and six IT firms, affecting green card paths for tech workers. The suspension is limited to these companies and does not impact other green card options like EB-2 NIW or EB-1A. Pending PERM applications are paused but not denied, and new applications from these employers cannot proceed. Workers at affected companies may explore alternative green card pathways.

Microsoft has reportedly withdrawn from a $2.7B UK supercomputer project, which was unveiled during Trump's 2025 state visit. The project, involving 23,040 Nvidia chips, faced power supply delays. Microsoft and OpenAI have stepped back, while Google has agreed to take capacity at another Nscale site. Nscale is exploring alternative power solutions and remains committed to the project.

Amazon's stock rose 5% to $262.42 after Morgan Stanley upgraded its price target to $350, citing faster AWS growth and AI opportunities. Morgan Stanley expects AWS revenue to grow 47% in 2027 and 42% in 2028, with operating margins reaching 44% by 2028. The firm also highlighted potential catalysts in AI and robotics. Microsoft and Alphabet stocks gained 1%.

Microsoft (MSFT) ended its agreement to anchor Nscale's AI data center in Loughton, UK, due to interconnection delays pushing power supply to the 2030s. The site was to supply 50-90 MW for Azure, with Nscale investing £2 billion. Microsoft remains committed to its partnership with Nscale globally. Nscale is exploring alternative power sources and other UK sites. The Loughton project was part of Microsoft's $30 billion UK investment pledge.

CoreWeave (CRWV) stock rose after Goldman Sachs upgraded it to 'buy,' citing manageable debt for AI data centers. The company's shares had fallen in October due to concerns over higher borrowing rates and inflation. Analyst Gabriela Borges lowered her price target but maintained confidence in the company's long-term prospects.