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Amazon Has Paused Some Data Center Lease Commitments, Wells Fargo Says
Amazon has delayed some commitments around new data center leases, Wells Fargo analysts said Monday, the latest sign that economic concerns may be affecting tech companies' spending plans. From a report: A week ago, a Microsoft executive said the software company was slowing down or temporarily holding off on advancing early build-outs. 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. They added that "the positioning is similar to what we've heard recently from MSFT," in that both companies are reeling in some new projects but not canceling signed deals. Read more of this story at Slashdot.
Amazon has delayed some commitments around new data center leases, Wells Fargo analysts said Monday, the latest sign that economic concerns may be affecting tech companies' spending plans. From a report: A week ago, a Microsoft executive said the software company was slowing down or temporarily holding off on advancing early build-outs. 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. They added that "the positioning is similar to what we've heard recently from MSFT," in that both companies are reeling in some new projects but not canceling signed deals.
Read more of this story at Slashdot.
