Overview

• Amazon Web Services has temporarily paused some international data center lease negotiations, particularly in Europe, according to analysts at Wells Fargo.
• AWS characterized the pause as routine capacity management, emphasizing that its overall expansion plans remain unchanged.
• The move mirrors Microsoft's recent decision to scale back or delay AI data center projects, reflecting a broader recalibration by hyperscalers in response to economic concerns.
• Rising costs, proposed tariffs, and potential economic slowdown are prompting cloud providers to reassess their aggressive AI infrastructure investments.
• Despite these pauses, other major players like Meta, Google, and Oracle continue to actively expand their data center capacity.