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Microsoft scales cloud at the speed of AI

Doubling data center capacity while achieving cost leadership

Data centers are the foundation of our digital world. With massive advancements in AI, increased cloud adoption and ongoing digital transformation across industries, there is unprecedented demand for new data center capacity.

The global data center infrastructure industry is forecasted to double and possibly triple in size over the next ten years with 38 gigawatts of new capacity required for generative AI alone by 2028.

ABOUT MICROSOFT

1.4B

People use its technology globally

300+

Data centers across more than 30 countries

30%+

Annual growth rate for Microsoft Azure and other cloud services

Source

Microsoft, a key player in the cloud services industry, has invested billions to expand its data center capacity—building new facilities and upgrading existing ones to support Azure cloud service and AI. To sustain this rapid growth and deliver cloud services efficiently at scale, the company identified a strategic opportunity to transform its supply chain.

Together with Accenture, the tech leader embarked on an end-to-end cloud supply chain capability transformation that is underpinned by a modernized data platform that enables insight-driven decision-making, drives greater agility and efficiency, and supports the company’s sustainability commitments.

VALUE DELIVERED

$100M

in cost savings

Reimagining the cloud supply chain

From digital twins to AI agents, Microsoft is transforming how it manages inventory, data, and spare parts across its global network.

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Cloud planning powered by unified data

To manage an increasingly complex cloud supply chain, Microsoft needed a unified view of product data for server rack and network systems—including lifecycle details and inter-product relationships. We implemented a new data model that halved hardware SKUs, eliminated dozens of manual processes, and established governance to ensure data quality.

Unlocking efficiency with a shared data model

This established the digital thread and core data now used across functions to shorten planning cycles, reduce inventory buffers, and contribute to capital expenditure savings. The team is now expanding the new data model to manage and coordinate advanced computing resources for AI workloads.

Digital twin-powered smart inventory tracking

Microsoft needed a way to reliably track and manage critical inventory across its massive partner and supplier network spanning 34+ markets. The team built two control towers – one for tracking, one for deployment to datacenters with capacity needs. The Azure-based solution creates a digital twin of the supply chain, speeding decisions and boosting resilience.

Proactive planning driven by agentic AI

A blockchain-based solution enhances transparency and security by digitizing items in a shared data structure, while a small Language Model enables advanced AI and Generative AI applications and agents within and across Microsoft’s supply chain functions. These capabilities are beginning to deliver cutting-edge agentic alerting insights and planning and execution capabilities.

Reimagining spare parts management

The team built a digital and physical SAP-powered platform to manage Microsoft’s spare parts supply chain. In one year, it saved nearly $100M while reducing data center emissions. Microsoft previously relied on third parties to handle spare parts, repairs, and warranties across its data centers. It insourced this function to boost performance, flexibility, and control.

Soaring to new heights of transparency and resiliency

Microsoft’s Azure continues to lead in cloud computing with a consistent ~30%+ annual growth rate. The company’s supply chain reinvention ensures that its data center capacity scales in line with this expansion.

The new holistic, end-to-end approach unifies the planning, procurement, deployment and maintenance of its data center equipment, powered by a connected, intelligent data platform. Now, Microsoft can continue to enable digital growth while driving massive efficiencies and leading the charge towards a more transparent and sustainable future.

WHAT WE DO

Capabilities:

Industries:

"Our partnership with Accenture has been instrumental to accelerating our cloud supply chain transformation, helping us rapidly scale our growth."

Jodi Larson / Vice President, Cloud Supply Chain Strategy and Transformation, Microsoft

MEET THE TEAM

Pete Bowden

Managing Director

LinkedIn

Teran Andes

Managing Director – Strategy & Consulting

LinkedIn

Patrick Fleisch

Managing Director

LinkedIn