PYMNTS.com·2025-04-22 21:59Core Insights - AWS and Microsoft are pausing or slowing down the signing of leases for data centers, indicating a shift in their expansion strategies based on demand signals [1][2] - Microsoft plans to spend $80 billion or more on data centers by 2025, despite slowing some early-stage projects [3][4] - AWS describes its changes as routine capacity management, maintaining strong demand for generative AI and foundational workloads [5][6] Company Strategies - Microsoft has doubled its data center capacity in the last three years and operates over 350 data centers globally [4] - AWS has 114 availability zones and plans for 12 more, serving 245 countries and territories, but has paused discussions on colocated data centers, particularly abroad [6] - Other major data center owners like Meta, Google, and Oracle remain active in the market, while Nvidia shows elevated activity [7] Market Trends - Global data center capacity is expected to grow at 15% per year until 2027, driven by AI advancements and increasing demand for cloud services [9] - The construction of data centers is at record levels due to the explosive growth in AI and digital infrastructure needs [8][9] - The experience in China serves as a cautionary tale, where rapid data center buildouts have led to economic challenges for many operators [10][11]