Microsoft Activates Fairwater Data Center and Signs 20-Year Chevron Power Pact, Yet Stock Struggles at 31% Off Peak
23.06.2026 - 18:16:59 | boerse-global.de
Microsoft’s sprawling infrastructure push is now coming into sharper focus. On the ground, the first building on the Fairwater campus in Mount Pleasant, Wisconsin, went live on June 23, 2026 — roughly two years after 10,000 construction workers broke ground and ahead of schedule. At the same time, the company locked in a 20-year electricity supply agreement with Chevron for a new 2.67-gigawatt natural gas plant in West Texas, internally codenamed “Project Kilby.” Despite these milestones, investors remain unconvinced: the stock trades at around €327.80, more than 31% below its 52-week high of €478.10 reached in late October 2025.
The Fairwater facility marks a tangible step in converting Microsoft’s massive capital expenditure into usable compute capacity. Currently staffed by 550 full-time employees, the campus is slated to nearly double its workforce as a second building rises next door. Foundations, steel frames and utility lines are already under construction, with completion expected by 2028. Total planned investment in Wisconsin reaches $4.7 billion by that date. The project is not without local friction: in mid-June, residents of Mount Pleasant reported a low hum emanating from the site, prompting engineers to begin installing soundproofing materials and additional insulation components over the coming months.
The Chevron deal addresses an even larger strategic need. Microsoft’s AI business has reached an annualized revenue run rate of $37 billion, a 123% surge from the prior year. Azure, the cloud unit that powers most of that growth, expanded 40% in the same period. Reliable, industrial-scale electricity is the critical enabler, and a 20-year commitment signals the company’s confidence in sustained demand. Microsoft is funding the expansion through operating cash flow: for the first nine months of its fiscal year ending March 2026, it plowed $80.1 billion into capital investments while generating $127.5 billion in operating cash flow, meaning no additional debt is needed to finance the build-out.
Should investors sell immediately? Or is it worth buying Microsoft?
Financially, the underlying business remains robust. In the third quarter of fiscal 2026, Microsoft reported total revenue of $82.9 billion, an 18% gain year-over-year. The Intelligent Cloud segment alone contributed $34.7 billion, up 30%. Meanwhile, the contracted order backlog — a measure of future revenue certainty — stood at $627 billion, providing an unusually high degree of visibility for a company making such heavy upfront investments.
Yet the share price tells a different story. Over the past twelve months, Microsoft has lost nearly 22% of its value, and since the start of 2026 the decline is roughly 20%. The stock sits well below both its 50-day moving average of €354.48 and its 200-day moving average of €385.69, confirming a persistent downtrend. The relative strength index has fallen to 37.4, approaching oversold territory. Growth stocks broadly have faced headwinds this year, and Microsoft has not been spared.
The market’s real question remains whether the new AI infrastructure — exemplified by Fairwater and the Chevron power contract — can sustain Azure’s growth without crushing margins. Each new data center is a data point in that equation, but the ultimate verdict will come with the next quarterly report, expected in late July 2026. Until then, the gap between Microsoft’s operational momentum and its stock price continues to widen.
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