# Microsoft Reviews Some Neocloud Deals as IREN Project Schedule Shifts By John Kim Canonical URL: https://www.tokenpost.com/news/business/51123 Published: 2026-11-07T21:47:43.000Z Updated: 2026-11-07T21:47:43.000Z Section: Business > IREN’s Texas campus could still finish weeks or months late. Nebius was fined $1 million for operating generators without a permit in New Jersey. People familiar with the projects said Microsoft is reviewing some neocloud deals amid delays, higher costs and a New Jersey permit fine, and that Microsoft and IREN recently renegotiated a Texas schedule. Neocloud providers supply outside computing capacity for artificial intelligence workloads. Microsoft is weighing whether to sign additional contracts and has stepped away from some projects it considers too risky, the people said. The company said it tracks partners’ delivery progress and adjusts plans as conditions change, describing that as part of managing complex infrastructure projects. Microsoft’s agreement with IREN is valued at about $9.7 billion. A generator fire struck IREN’s Texas campus in April, and hardware-delivery delays surfaced in August. People familiar with the project said fiber-cabling problems have emerged more recently. They said the campus could still take weeks or months longer to complete despite the schedule renegotiation. Microsoft’s commitment to Nebius could reach $19.4 billion, including computing capacity using Vera Rubin chips in New Jersey. Nebius was fined $1 million for operating generators without a permit at a New Jersey site. People familiar with the project said Microsoft sent staff to monitor the site. Microsoft’s commitments to Nscale could total as much as $43.8 billion across projects in Texas, Norway and Portugal. Microsoft declined to expand a Texas agreement, and some capacity went to Figure AI. It also dropped a letter of intent to lease 1.35 gigawatts in West Virginia. In October, Microsoft canceled a roughly $3 billion agreement tied to a U.K. data center project after power connection delays. Nscale said the U.K. withdrawal did not affect its other Microsoft contracts and represented a small part of Microsoft’s commitment to Nscale. Microsoft had previously [exited three Nscale projects](). Microsoft added more than $200 billion in data center lease commitments over the past year. Some include neocloud capacity, but most are intended to expand Microsoft’s own server footprint in coming years. The company has not ruled out signing more neocloud contracts, though multiple executives have grown more reluctant to rely on outside providers, people familiar with the matter said. ## Links in this article - [exited three Nscale projects](https://www.tokenpost.com/news/business/50470)