Microsoft wins $9.7b five-year Department of Defense software contract and joins clean energy data center initiative

Microsoft has secured a $9.7b, five year enterprise software consolidation contract with the U.S. Department of Defense, and joined Amazon, Google, and Meta in the Data Center Innovation Initiative focused on clean energy and sustainable materials for data centers.

The contract and clean energy initiatives position Microsoft across government software adoption, long-term software standard-setting in enterprise accounts, and the environmental profile of AI and cloud infrastructure operations.

At a current share price of $412.67, Microsoft trades about 26% below the analyst target of $560.63 and is flagged as trading 27.6% below Simply Wall St's fair value estimate, though the share price is down 2.9% over the last 30 days.