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April 28, 2025
Amazon and Microsoft, two of the biggest players in the cloud computing market, have recently slowed down their expansion plans for AI data centers. This decision raises questions about the current trajectory of the AI hype and the technology's economic prospects.
According to reports, Amazon has suspended negotiations for the construction of new AI data centers, primarily in Europe. This particularly affects co-location projects, where companies share the costs of power, cooling, and infrastructure. Although Amazon already has enormous data center capacity, this step suggests a possible reassessment of the need for further AI infrastructure.
Microsoft also withdrew from several planned data center projects a few weeks ago, including in the UK, Indonesia, Australia, and even in the US. Microsoft CEO Satya Nadella admitted that the economic impact of AI has so far fallen short of expectations. These developments contrast with companies like Meta and xAI, which continue to invest in expanding their AI infrastructure.
Several factors could have contributed to this development. Firstly, the integration of AI into existing business processes is proving more difficult than expected for many companies. The profitability of AI applications is not yet guaranteed in all areas. Secondly, the high energy demand of modern data centers poses a challenge for power grids. The increasing strain on infrastructure could also influence the expansion plans of the tech giants.
The decisions by Amazon and Microsoft could have far-reaching consequences for the entire industry. In particular, Nvidia, a major supplier of graphics processing units for AI applications, could be affected by a decline in demand for data center capacity. Additionally, the ongoing trade dispute between the US and China, as well as a possible global recession, could further dampen investment in the AI sector.
The upcoming release of Amazon's quarterly figures will provide further insights into the current demand for AI services. The share price of Amazon and other tech companies has already declined significantly this year, reflecting the uncertainty in the market. It remains to be seen how the development of AI technology and the associated investments will evolve in the coming months.
Bibliographie: - https://t3n.de/news/nach-microsoft-nun-auch-amazon-ki-1684088/ - https://t3n.de/news/milliarden-liegen-ploetzlich-auf-eis-auch-amazon-stoppt-ausbau-von-ki-rechenzentren-1684088/?utm_source=rss&utm_medium=feed&utm_campaign=t3n-news - https://t3n.de/tag/kuenstliche-intelligenz/ - https://t3n.de/ - https://t3n.de/tag/microsoft/ - https://www.business-punk.com/2025/04/ki-kater-nach-dem-hype-amazon-und-microsoft-stoppen-rechenzentren-ausbau/ - https://t3n.de/news/ - https://www.facebook.com/t3nMagazin/posts/ist-das-ende-des-ki-hype-in-sicht-nach-microsoft-tritt-jetzt-auch-amazon-beim-au/1105892298242588/ - https://t3n.de/archive/28-04-2025/