Amazon has paused some data center lease commitments, Wells Fargo says

Core Insights - Amazon has significantly revamped Alexa with artificial intelligence, marking the most substantial update since its launch over a decade ago [1] - Economic concerns are impacting tech companies' spending plans, as evidenced by Amazon delaying some new data center leases [1][3] - Both Amazon Web Services (AWS) and Microsoft are experiencing a slowdown in advancing new projects, although they are not canceling existing agreements [2][3] Company Developments - AWS has paused discussions on some colocation leases, particularly international ones, indicating a cautious approach in the current economic climate [3] - Amazon's stock has declined by 25% this year, while Microsoft has seen a 15% drop, reflecting broader pressures on tech stocks [5] - Despite the economic challenges, Amazon's CEO Andy Jassy previously stated that the company does not plan to reduce data center construction [5] Industry Context - The tech sector is facing pressures due to proposed tariffs that could increase equipment import costs and potentially slow economic growth [4] - Cloud infrastructure providers, including Amazon and Microsoft, have been aggressively investing in securing Nvidia's GPUs and building new data centers, with plans to spend hundreds of billions [4]