Amazon pause some international data center deals for AWS, reflecting a broader shift in how tech giants approach AI infrastructure investments and cloud capacity planning.

Wells Fargo analysts claim that Amazon has taken a temporary break from several data center leasing agreements for its cloud operations, particularly in foreign markets. Juby Babu for Reuters reports that this suggests a possible temporary decline in demand for large-scale data center infrastructure.

The top cloud services provider in the United States is involved in this development, which adds to mounting evidence that economic instability is forcing tech companies to reconsider their large investments in AI infrastructure, including expensive parts like Nvidia chips.

While the precise scope of the halt by Amazon is still unknown, analysts say it is similar to Microsoft's recent delay. Amazon does not seem to be abandoning any signed agreements but instead reevaluating several aggressive, recent leasing commitments.

Analysts noted that in addition to shortening lead times for space expected to be operational by the close of 2026, these major cloud providers appear to have adopted a rather selective strategy towards renting out high-capacity power. However, this has not stopped companies like Google, Meta, and Oracle from making new demands for leases.

Kevin Miller, Vice President of Amazon Web Services Global Data Centers, articulated in a LinkedIn post that there had been no major changes to the company's growth strategy and termed the move as normal capacity planning.

Investor trust in the significant expenditures made by American tech companies in AI infrastructure has started to wane. Contributing concerns include slower-than-expected profitability and the emergence of Chinese firm DeepSeek, which recently unveiled competitive AI technology at a significantly lower cost than that of Western companies.