Market Chatter: Microsoft Decides Against Expanding Texas AI Data Center Deal With Nscale

04:31 AM EST, 11/05/2026 (MT Newswires) -- Microsoft (MSFT) has decided not to exercise an option to more than double its existing agreement with UK-based AI cloud provider Nscale for computing capacity at a Texas data center, Reuters reported Thursday, citing a person familiar with the matter. According to the report, the decision, made months before Nscale's September initial public offering filing, does not affect its existing Microsoft contracts worth up to $43.8 billion through December 2033. The decision does not alter Nscale's disclosed $103 billion contract value, while the company is in talks with other major customers for the remaining Texas data center capacity, Reuters added. Microsoft did not immediately respond to MT Newswires' request for comment. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)