Amazon has paused some data center lease commitments, Wells Fargo says
Summary
Michael Nagle/Bloomberg via Getty Images Amazon has delayed some commitments around new data center leases, Wells Fargo analysts said on Monday, the latest sign that economic concerns may be affecting tech companies spending plans. Amazon Web Services and Microsoft are the leading providers of cloud infrastructure, and both have ramped up their capital expenditures in recent quarters to meet the demands of the generative artificial intelligence boom. "Over the weekend, we heard from several industry sources that AWS has paused a portion of its leasing discussions on the colocation side (particularly international ones)," Wells Fargo analysts wrote in a note. Tech stocks have been pressured across the board his year as President Donald Trumps proposals for widespread tariffs raised the prospect for dramatically higher costs on imports of equipment while also threatening to slow the economy. Cloud infrastructure providers have been aggressively announcing plans to collectively spend hundreds of billions of dollars securing Nvidias graphics processing units (GPUs) and building new data centers.
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