Overview
- Amazon Web Services has paused certain international colocation lease negotiations but is not canceling any signed agreements.
- The company emphasizes this decision as routine capacity management with no changes to its long-term expansion plans.
- The pause aligns with similar recent actions by Microsoft, which halted or delayed projects due to oversupply concerns.
- Economic uncertainty, including proposed tariffs and slower AI infrastructure ROI, is prompting hyperscalers to reassess spending strategies.
- While Amazon and Microsoft pull back selectively, competitors like Meta, Google, and Oracle continue to actively pursue new data center leases.