Amazon follows Microsoft in retreat from ambitious plans for AI Data Center

The number of technological giants that return to their plans for AI Data Center increases to two. According to Banks Wells Fargo and TD Cowen, Amazon has pause Negotiations on some data on joint location, mainly in Europe. The news comes a little after several reports indicated that Microsoft had stopped or canceled some of his plans.

“The magnitude of the break is not clear,” said Wells Fargo report, “But positioning is similar to what we have recently heard from MSFTs are absorbing aggressive recent leasing deals.” It is continued to emphasize that Microsoft still seems to be undergoing already signed deals. Co-location is the concept of sharing huge costs for infrastructure by building data in partnership with other companies that need it.

It is important to keep in mind that other companies, including Meta and XAI, continue to aggressive data centers to nourish their AI models. The construction of large -scale data centers requires considerable amounts of power that grilles are struggling to satisfy, and Amazon may need more time to open data centers that are already under construction. The Wells Fargo report states that the e -commerce giant already has 9 GWS (Gigawatts) with an active power capacity in its existing infrastructure of the Data Center.

But the news further supports some concern that demand for AI infrastructure is cooling as businesses are still struggling to find ways to actually use the new technology to save time and money. This does not help that President Trump’s continuing trade war leads to the collapse of stocks. Amazon has been reduced by 24% this year and the company is exposed to tariffs for China as forecasts suggest more than 70% of the goods On its names The market they come from China.

There is anxiety among economists that trade war and potential recession can slow the AI ​​boom, as the main players, including NVIDIA, are caught in the cross fire. This company receives a considerable part of its business from China and is under control of the potential closing of the eyes of high -end chips, avoiding sanctions and landing in China. If Amazon is reducing investments in new data centers, it can further damage NVIDIA chip sales.

Amazon reports its next revenue on May 1 and will have careful eyes at what AI search looks like. Microsoft recently stepped back on ambitious A $ 1 billion data centers in OhioSurprising employees there who offered the generous tax incentives of the company to transfer the deal, despite fears that very few people will work and require huge energy and water resources. CEO Satya Nadella tried to tame expectations regarding the AI ​​revolution, saying in an interview that technology has not yet become a meaningful elevator For the US economy, although his company repeated his plans to spend $ 80 billion on infrastructure over the next few years.

If there is any silver lining, it is that the locals will not have to pay so much in taxes to support those upgrades that have been canceled. On the reverse, they hire many construction workers for initial implementation and there is some hope that the demands of the data centers will finally push local municipalities to modernize the infrastructure and build clean energy. There was a cut of hope that AI would provide something of immediate practical value if not chatbots that still wrong things all the time or Police Systems based in PalantirS