First of all, it was Microsoft. NOW Amazon Raise the eyebrows to Wall Street while fresh panels suggest that the cloud giant can release the accelerator in the race to build AI data centers.
Some analysts fear that Amazon web servicesThe dominant cloud supplier can enter a digestion phase that could slow the momentum on the data centers market.
Speculation gained ground on Monday when it is famous Jim Chanos Published on X with a simple and disturbing remark, alongside an analyst note suggesting caution around the plans of the AWS data center.
This note, published by analysts of Wells Fargo, cited industry sources which reported this weekend that WS had taken a discussion break for certain new offers of roommate data center, in particular international offers. Analysts stressed that the break scale remains clear, although they are worried.
“It seems that hyperscalers are more demanding with the rental of large power clusters and the tightening of pre-logging windows for the capacity that will be delivered before the end of 2026,” the analysts wrote.
Oh no, colo
On the same day, TD Cowen analysts published similar results from their own data center research.
“Our most recent controls indicate a decline in the American colocation offers of Amazon,” they wrote in a note to investors. Colo offers, as they are known in industry, involve different companies sharing space in the same data center.
“We are aware of selecting colocation agreements from which he has moved away, as well as the expansion options he has chosen not to exercise,” added Cowen analysts.
They also declared that their recent industry checks indicate a slowdown in Amazon’s ambitions in Europe.
“This is a dynamic that we will continue to monitor,” analysts wrote.
Three signs of moderation
More broadly, Cowen analysts have identified cooling on the data centers market – compared to the frantic activity of recent years.
“We observed moderation in exuberance around the prospects of hyperscal demand that characterized the market this time last year,” they wrote, presenting three specific signs of quieter time:
- The demand for the data center has a little moderate, especially in Europe.
- There has been a wider moderation in the emergency and speed with which Cloud companies seek to secure the capacity of the data center.
- The number of large transactions on the market seems to have moderate.
A certain context is important here. The AI data centers market has become gangbusters since Openai chatgpt Fleece on the scene at the end of 2022 and showed the potential of generative AI technology.
These signs of moderation are quite small compared to this enormous trend. However, thousands of dollars in current and planned investments are on the AI generative boom. With as much money on the line, any idea that this rocket does not rise at a light speed is disturbing.
Microsoft has made similar movements
These similar Amazon echo signals Moves by Microsoftwho recently interrupted certain data center projects.
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“Like Microsoft, AWS seems to digest a recent aggressive rental activity,” analysts of Wells Fargo wrote.
They have specified that this does not mean that the transactions signed are canceled, but rather that WES withdraws from start -up agreements such as letters of intent or qualifications – common resources that cloud suppliers work with partners to prepare for data center projects.
Amazon says he always sees a high demand for AI
In response to these growing concerns, Kevin Miller, vice-president of the AWS global data centers, published Linkedin on Monday to offer a certain clarity.
“We continue to see a high demand for generative AI and fundamental workloads on AWS,” he wrote.
He explained that WESS has thousands of cloud customers around the world and has to weigh several solutions to obtain the right capacity at the right time.
“Some options could end up costing too much, while others may not deliver when we need capacity,” Miller wrote. “Other times, we see that we need more capacity in one place and less in another. It is a management of routine capacity, and there was no recent fundamental change in our expansion plans.”
Amazon did not respond to a request for comments from Business Insider.
Digestion or indigestion?
Miller’s comments aim to position the break not as a red flag, but as part of the normal reflux and the growth flow of the data center.
Historically, these periods of digestion, marked by the slowdown in new leases or deferred constructions, can last 6 to 12 months before a rebound, analysts of Wells Fargo wrote. Google, for example, withdrew from the rental in the second half of 2024, to return aggressively at the beginning of 2025, they noted.
Cowen analysts have said that recent Amazon’s recent movements to withdraw colocation agreements could be linked to efforts to increase efficiency through its data center operations. In addition, AWS generally does not make a lot of roommates anyway, preferring to build your own data centers, analysts wrote.
They have also written that other technology giants, such as Meta and Google, still pursue new capacities aggressively.
The main thing? While AWS seems to breathe, the AI cloud race is far from over. Analysts and investors will closely monitor to see if this break marks a brief recalibration or a greater change in the AI strategy.