Tech Giants Pause Data Center Expansions Amid Economic Headwinds
Summary
Major tech giants like Amazon and Microsoft are strategically pausing or slowing down their data center expansion plans, signaling a shift in spending priorities amidst economic headwinds and potential cost-cutting measures within the industry.
Key Points
- Amazon has paused some data center lease commitments, particularly international ones, according to industry sources cited by Wells Fargo analysts.
- Microsoft has also recently slowed down or temporarily held off on advancing some early data center build-outs.
- The moves by Amazon and Microsoft come amid economic concerns that may be affecting tech companies' spending plans.