Microsoft Data Center in Granger to Start Construction Soon, Microsoft Stock (NASDAQ:MSFT) Slips

Tech giant Microsoft MSFT -0.41% ▼ and its ambitions in cloud operations and artificial intelligence (AI) require data centers, and as such, Microsoft is building them in substantial numbers. One such data center is set to begin construction in the next few weeks, though the weather in the region may intervene. Those plans did little to help share prices, though, as Microsoft shares slipped fractionally in Wednesday afternoon’s trading.

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The data center in Granger, Indiana is set to begin construction in either late April or early May, depending on weather. Given that the weather in that area has been unusually active of late—multiple tornadoes have struck the vicinity in the last week alone—these dates could fluctuate accordingly. In fact, reports note that the groundbreaking does not even have a date attached to it just yet.

Once the data center is built, it will constitute six separate buildings, and each will employ about 50 people, bringing the total to within striking distance of 300 jobs added to the Granger area. Perhaps most noteworthy, Microsoft asked for no special tax treatment as it plans to pay full property taxes. This will be a boon to the area’s school system, library, and various local governments.

“Looking for a Bunch of RAM”

Meanwhile, one of the most significant new competitors to Microsoft in gaming, the new version of Valve’s Steam Machine, is apparently still on track for a release this year. That is something of a pushback from earlier projections that called for a release in the first quarter of this year. The reason for the delay is just what you might think: supply issues.

In fact, Valve noted that it is currently looking for “…a bunch of RAM…” to supply its Steam Machine needs. This lack is also holding Valve back in terms of making further announcements about release dates, as well as about pricing, two areas that many are watching with determined interest. A release this year will be good for Valve and bad for Microsoft, as it will give Valve first-mover advantage in being able to play PC games in a living room much more readily. This was Microsoft’s exact plan, in part, and everyone who buys a Steam Machine may find himself, or herself, less interested in Microsoft’s next offering.

Is Microsoft a Buy, Hold or Sell?

Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 33 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 5.87% rally in its share price over the past year, the average MSFT price target of $594.02 per share implies 46.91% upside potential.

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