Amazon Web Services, the world’s largest data center user, has reportedly paused some of its data center leasing discussions, indicating a slowdown in the tech giant’s near-term appetite for new data center capacity.
Amazon’s cloud division is “pulling back” from part of its pipeline of potential colocation data center lease deals, particularly in markets outside the United States, Wells Fargo analysts wrote in a research report Monday, citing industry sources.
AWS isn’t canceling executed leases but is halting the formal processes like letters of intent and statements of qualification that typically precede signed agreements with colocation providers, the report says.
Although it remains unclear just how widespread this pause is, AWS’ decision to trim its leasing pipeline comes on the heels of Microsoft similarly withdrawing from data center leases and growing questions about the future of data center demand in general.
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