As Microsoft prepares to report quarterly earnings, a key focus for investors is the company's use of finance leases. These leases allow Microsoft to spread the cost of building data centers over time, a necessity as the company increases infrastructure to support AI workloads. In July, Microsoft disclosed that finance leases, yet to begin, had soared by nearly $100 billion more from two years ago. The increase in spending is attributed to Microsoft's need for more data centers and partnerships with third-party cloud providers. The high costs impact profitability, but analysts remain confident in Microsoft's strategy.
