Microsoft announced that growth in its Azure cloud-computing business will remain slow in the current quarter.

Revenue for the division is expected to increase by up to 32% for the fiscal third quarter, similar to growth in the previous quarter.

The company attributed this sluggish growth to limited data center capacity, despite a 157% expansion in Azure AI services during the same period.

For the entire fiscal year, the company anticipates allocating US$80 billion to build AI data centers.

Despite strong demand and significant infrastructure investments, Microsoft faces challenges regarding profitability and competition.

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