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Amazon Temporarily Pauses Some International Data Center Lease Talks

The move, described as routine capacity management, reflects a cautious approach to AI infrastructure investments amid economic uncertainties.

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Amazon logo is seen in this illustration taken February 11, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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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.