Amazon follows Microsoft in abandoning ambitious plans to build AI data centers
Amid geopolitical instability, tariff pressure from the US, and energy challenges, large technology companies are rethinking their investment strategies.
Amid geopolitical instability, tariff pressure from the US, and energy challenges, large technology companies are rethinking their investment strategies.
Amazon has suspended talks on some data center co-location deals, mostly in Europe, according to Wells Fargo and TD Cowen. The news comes shortly after several reports that Microsoft has suspended or canceled some of its plans.
Building large data centers requires significant amounts of electricity, and Amazon may need more time to open data centers that are under construction. The Wells Fargo report notes that the e-commerce giant already has 9 GW of capacity in its existing data center infrastructure.
Microsoft recently abandoned an ambitious $1 billion data center project in Ohio, surprising state officials who had offered the company generous tax breaks to secure the deal.
Experts say the decision to reduce its presence in European data centers could be influenced by President Trump's tariff policies, which have already led to a drop in shares. Amazon shares have fallen 24% this year, and the company is being hit by tariffs from China, as it is estimated that more than 70% of the marketplace's products come from China.
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Chinese Amazon sellers raise prices or leave U.S. over rising tariffs — Reuters
Chinese Amazon sellers raise prices or leave U.S. over rising tariffs — Reuters
Amazon cancels orders for goods made in China and other Asian countries — Bloomberg
Amazon cancels orders for goods made in China and other Asian countries — Bloomberg
“The US may not be on the same team with us anymore.” Europe is considering abandoning American “clouds” from Google, Microsoft and Amazon due to the actions of the Trump administration
“The US may not be on the same team with us anymore.” Europe is considering abandoning American “clouds” from Google, Microsoft and Amazon due to the actions of the Trump administration
