Eyeing AWS, Microsoft Hunts for Data Center Space

Microsoft is looking to lease a big chunk of data center space to bolster its Azure cloud computing service in Silicon Valley, in an effort to catch up to its biggest rival, Amazon Web Services.

Microsoft is in talks with data center companies Digital Realty and Vantage Data Centers to lease more than 10 megawatts of capacity in the San Francisco area by the middle of next year, say people familiar with the discussions.