Microsoft agrees major 1,100 MW power deal for AI data centers as UK regulators prepare more scrutiny

Microsoft is moving to lock in large-scale electricity capacity for its artificial intelligence data centers, and it is doing so as regulators in the UK prepare to take a closer look at parts of the company’s business, according to a report from Yahoo Finance.

The article says Microsoft agreed a long-term power supply deal totaling 1,100 megawatts for 20 years with NiSource, a utilities and energy infrastructure company. Megawatts, a unit of electrical power, are often used to describe the scale of power required for data centers, and a multi-decade agreement suggests Microsoft is planning for sustained load growth rather than short-term purchases.

While the report frames the agreement around Microsoft’s expanding AI infrastructure, it does not provide additional deal terms in the text available for this review, such as where the power would be delivered, the specific data center sites involved, or whether the arrangement includes constraints on pricing or availability.

In parallel, Yahoo Finance reports that the UK Competition and Markets Authority (CMA) is preparing to label parts of Microsoft’s business in a way that could tighten regulatory expectations. However, the account provided here does not specify which business segments would be covered by that labeling, what timeline the CMA is following, or what new obligations the label would trigger for Microsoft.

The broader backdrop is that AI computing has become a capital- and infrastructure-intensive cycle. Beyond servers and chips, companies must secure reliable power, transmission, and on-site energy systems to keep data centers running as demand rises for cloud and AI services. For Microsoft, which operates large-scale cloud infrastructure through Azure and builds AI workloads across services, the ability to obtain electricity at scale can directly affect delivery timelines and operating costs.

Regulatory scrutiny, meanwhile, reflects how governments are reassessing market power in big tech as well as the conduct of dominant platforms. When regulators focus on classification or designation decisions, the key question is often whether a firm’s size and position in a given market allow it to behave in ways that limit competition, reduce choice, or disadvantage rivals.

What Microsoft has not disclosed in the material available for this review is the operational detail regulators and counterparties usually look for in major energy agreements, including the exact delivery geography, the degree of flexibility during peak demand, or how the company expects to manage reliability and cost over the full 20-year term. The report also does not outline the specific content of the UK CMA’s planned action, leaving the practical impact on Microsoft uncertain.

Next, investors and customers will likely watch for additional details around the NiSource power supply agreement, including where it feeds into Microsoft’s data center footprint and how it affects planned capacity additions. On the regulatory side, attention may turn to the CMA’s forthcoming determination, including what it is classifying, what rules or remedies could follow, and whether Microsoft can shape those outcomes through engagement or legal process.