Amazon has postponed new data center contracts, reflecting a broader trend of hyperscalers, including Microsoft, who have suspended expansion plans amid economic pressures. Analysts at Wells Fargo noted AWS paused lease discussions, aligning with Microsoft’s recent strategy to reevaluate significant investments following geopolitical tensions and economic uncertainty. Both companies remain committed to existing contracts but are reassessing future projects. This slowdown arrives as U.S. tariffs impact sourcing critical technology components, like Nvidia’s GPUs from Taiwan, potentially affecting cost structures and further strategic decisions in the tech industry.
Amazon and Microsoft have both decided to suspend certain data center expansions due to economic pressures and geopolitical issues, reflecting a broader industry trend.
Both AWS and Microsoft are scaling back new projects, a decision prompted by rising tariffs and other geopolitical challenges affecting the supply of crucial technology.
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