# Microsoft plans to use fewer neoclouds as Crusoe sells its Wyoming data center site to Google

> Sources told CNBC that Microsoft has not decided which partners to drop. Google, which took over Crusoe’s unfinished Wyoming project, plans to invest $17 billion.

- Publisher: JARRUS (@jarrus.tech), thejarrus.com
- Story date: Nov. 6, 2026 (2026-11-06)
- Published: 2026-11-07
- Tags: Microsoft, Google, Data centers and energy
- URL: https://thejarrus.com/en/news/microsoft-fewer-neoclouds/

### Microsoft trims its neocloud roster

On Nov. 5, Bloomberg reported that some Microsoft leaders have "buyer's remorse" as neoclouds struggle with delays, regulatory snags and high costs. On Nov. 6, CNBC reported, citing unnamed sources, that Microsoft will cut the number of neoclouds it works with. It will keep a few key suppliers and prioritize its own data centers. Two sources said Microsoft is still evaluating and has not decided which companies to drop, and that it chose not to renew a deal with Oracle.

Microsoft has signed deals in recent years with CoreWeave, Nebius, Chronoscale, IREN, Lambda and Nscale, and 62% of CoreWeave's 2024 revenue came from Microsoft. Microsoft walked away from an Nscale site in England over access to electricity. The FT reported that it also declined to renew an Nscale contract in Texas. A Microsoft spokesperson said "the pace of our new agreements reflects what we need today." According to CNBC, shares of CoreWeave, Nebius and IREN are down roughly half over the past month.

### Crusoe's Wyoming site goes to Google

On Nov. 6, Crusoe announced that Google has acquired its data center site in southeast Wyoming. Crusoe handled site selection, government approvals and a hybrid power plan developed with Tallgrass Energy; the price was not disclosed. According to TechCrunch, Crusoe had announced the project with Tallgrass and planned to scale it to **10 gigawatts**. Bloomberg reported in June that Google took over development after concerns about cost and timing. Google did not buy Crusoe, which is developing another Google campus near Amarillo, Texas.

On Nov. 5, Google announced a **$17 billion** investment in its first Wyoming data center, without naming Crusoe. The site will draw 702 megawatts from Bloom Energy fuel cells, use carbon capture and storage and be air-cooled.

## Sources

1. [CNBC: Microsoft plans to use fewer neoclouds as AI buildout shows signs of strain, Nov. 6, 2026](https://www.cnbc.com/2026/11/06/microsoft-moves-to-consolidate-its-relationships-with-neoclouds-in-ai.html)
2. [Crusoe: Google Acquires Crusoe’s Wyoming Data Center Site, Nov. 6, 2026](https://www.crusoe.ai/resources/newsroom/crusoe-wyoming-data-center-campus-update)
3. [Google: Investing in Wyoming’s infrastructure, energy and workforce, Nov. 5, 2026](https://blog.google/innovation-and-ai/infrastructure-and-cloud/global-network/wyoming-data-center/)
4. [Bloomberg: Microsoft Sours on Neoclouds Amid Data Center Delays, Costs, Nov. 5, 2026](https://www.bloomberg.com/news/articles/2026-11-05/microsoft-sours-on-neoclouds-iren-nebius-nscale-on-delays-costs)
5. [TechCrunch: Crusoe sells troubled Wyoming data center project to Google, Nov. 6, 2026](https://techcrunch.com/2026/11/06/crusoe-sells-troubled-wyoming-data-center-project-to-google/)

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