Amazon postponed some of its new data centre leasing projects on a global scale due to economic reasons. Amazon Web Services (AWS), the company’s cloud computing arm, suspended many leasing negotiations abroad.

Amazon slows down data centre investments

The development revealed the effects of the recent economic concerns in the technology sector. Microsoft took a similar step last week, announcing that it had either slowed down or temporarily halted some new data centre projects.

Both tech giants had significantly increased their data centre investments in the last two years, driven by the rapid growth in artificial intelligence. However, the current economic environment has caused this aggressive investment process to be reconsidered.

Amazon’s decision will not affect ongoing and signed projects. The company is only putting the brakes on some future-oriented leasing initiatives that have not yet been finalised.

The technology sector continues to be overshadowed by economic pressures in 2025. US President Donald Trump’s new tariffs create the risk of an increase in the costs of imported technology equipment.

This will increase the costs of data centres that many companies, especially cloud service providers, plan to build. Amazon shares fell on Monday, and the total depreciation since the beginning of the year reached 25 per cent.

So what do you think about this issue? Do you think this decision taken by Amazon is correct? You can share your opinions with us in the comments section below.