Tech giant Microsoft (MSFT) has opened a new data center in Atlanta, which it is calling an “AI superfactory” because it’s built to handle large-scale artificial intelligence tasks. Unlike regular data centers that run many different apps for different users, this one connects directly with other Microsoft facilities and uses hundreds of thousands of Nvidia (NVDA) GPUs. Therefore, it can complete massive jobs and helps power OpenAI (PC:OPAIQ).
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Notably, the Atlanta data center is part of Microsoft’s Fairwater network and is linked to its first Fairwater facility in Wisconsin. CEO Satya Nadella explained that Fairwater is designed as a flexible system that can handle any workload, anywhere, by using the best tools and fastest connections. As a result, each data center can combine hundreds of thousands of Nvidia GPUs into a single, powerful system. Nadella also mentioned that over 100,000 GB300 chips will come online this quarter to help handle AI tasks.
Separately, Microsoft Azure CTO Mark Russinovich pointed out that today’s AI models need more than one or two data centers. Instead, they require a network of them. To support this, Microsoft has created an AI Wide Area Network that links its data centers through dedicated fiber-optic cables. Scott Guthrie, Microsoft’s executive vice president of Cloud + AI, said that AI’s future “will be shaped” by this setup by turning individual data centers into one large, connected system built for speed, flexibility, and efficiency.
Is MSFT Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 34 Buys assigned in the last three months. Furthermore, the average MSFT price target of $633.14 per share implies 26% upside potential.
