Amazon Web Services (AWS) has paused its plans for some data center leases, particularly in international markets, as concerns grow over AI infrastructure costs. Analysts from Wells Fargo highlighted that AWS's decision echoes similar moves by Microsoft, indicating a trend of reevaluation among tech giants regarding their data center investments. Despite announcing substantial budget increases for data centers, both companies are currently more discerning with leasing agreements, reflecting a shift in market demand and a slowdown in tech growth expectations. This cautious approach also contrasts with ongoing commitments from other tech players like Meta and Google.
AWS has paused discussions over data center leases, suggesting a more cautious approach to expanding AI infrastructure amid economic uncertainties.
AWS's decision is part of a broader trend where tech giants like Microsoft reassess their data center strategies due to weaker demand predictions.
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