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The shift comes as cloud providers face growing investor scrutiny over AI-related infrastructure spend
Amazon Web Services (AWS), is reassessing its approach to data centre leasing, with a particular focus on international markets, according to analysts at Wells Fargo.
The report suggests AWS has paused some leasing discussions, indicating a short-term slowdown in large-scale infrastructure expansion. Rather than cancelling existing agreements, the move appears to reflect a reassessment of recently secured capacity, as AWS looks to align its growth with projected demand over the next two years.
“It does appear like the hyperscalers (big cloud companies) are being more discerning with leasing large clusters of power, and tightening up pre-lease windows for capacity that (would) be delivered before the end of 2026,” Wells Fargo analysts noted.
This comes on the heels of Microsoft’s decision to shelve data centre projects totalling 2 gigawatts across the US and Europe, citing oversupply concerns based on revised demand forecasts.
“It looks like hyperscalers are becoming more selective when leasing large power clusters and are shortening pre-lease windows for capacity expected before the end of 2026,” Wells Fargo noted.
AWS has downplayed the move. “This is routine capacity management,” said Kevin Miller, Vice President of AWS Global Data Centers, in a LinkedIn post.
He addressed speculation around AWS’s data centre plans, stating that demand for both generative AI and core workloads remains strong. He noted that the company regularly evaluates multiple infrastructure options to meet customer needs efficiently. He confirmed there have been no fundamental changes to AWS’s expansion strategy.
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