Recent reports indicate that Amazon is pausing some of its data center deals, raising concerns among analysts about a potential slowdown in the data center market. This follows a trend observed in other cloud giants like Microsoft, suggesting a diversification phase for major players. Analysts from Wells Fargo and TD Cowen noted a retrenchment in Amazon Web Services' (AWS) approach to colocation deals, particularly with international expansions, hinting at a more cautious stance in pursuing growth opportunities in AI and data infrastructure.
It does appear like the hyperscalers are being more discerning with leasing large clusters of power, and tightening up pre-lease windows for capacity that will be delivered before the end of 2026.
Our most recent checks point to a pullback in US colocation deals from Amazon, as well as expansion options that it chose not to exercise.
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