AWS Pauses Data Center Leasing Amid Hyperscale Slowdown

Published 3 days agoAMZN

AWS Pauses Data Center Leasing Amid Hyperscale Slowdown

Amazon Web Services (AWS) has paused discussions on an undisclosed number of colocation data center leases, particularly for locations outside the United States. This development, reported by Wells Fargo over the weekend, was based on information from multiple industry sources.

The extent of AWS's leasing pause is unclear, but it suggests some moderation in hyperscale leasing activity, a term used for large-scale data center operations, by major companies like Amazon and Microsoft. Meanwhile, other tech giants such as Meta, Google, Oracle, and Nvidia continue to actively expand their data center facilities, according to Insider Monkey.

In response to the reported pause, Amazon's stock saw a decline of over 3.5%. Wells Fargo noted uncertainty regarding whether this move indicates any significant shifts or is merely a part of regular fluctuations within hyperscale leasing activity. AWS's strategic focus has included expanding its cloud infrastructure, showcased by its recent five-year partnership with Marvell Technology announced in late 2024.

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