Microsoft is paying more to deliver cloud-computing services to customers in Europe due to rising energy prices.
The company's revenue growth was its lowest in five years. The company released its first quarter results. Hood said that Microsoft was seeing a bigger than expected jump in expenses to power, heat and cool its European data centers. She estimated that the company will pay an extra $800 million in energy costs.
She said that most of it is in Europe. It's not just for the winter.
The price of a key fuel for generating plants has gone up as a result of Russia's war in Ukraine and the recovery of economies around the globe. Several tech companies had services shut down in London due to the heat in the city.
Hood said that Microsoft may be able to save money by shifting applications to the cloud and out of their corporate data centers.
European gas prices are less than a third of their summer peak because of efforts to import gas to fill up storage and warm weather.
Joe Ryan helped with the project.
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