According to professionals from the two companies, Amazon and NVIDIA have no ideas to slow down the development of data centers in order to help the workload of artificial intelligence. This comes as US President Donald Trump’s taxes raise fears that rising technology rates may lower AI need.
At a meeting held by the Hamm Institute for American Energy, Kevin Miller, Amazon’s sin leader of global data centers, said” there hasn’t really been any substantial modify” in the agency’s intentions. We continue to see very strong demand, and he said,” We’re looking both in the next couple of years as well as long term and seeing the numbers just going up.”
Josh Parker, NVIDIA’s senior director of corporate conservation, added that the leading chipmaker has no” seen a selloff” lately, as reported by CNBC. He continued, adding that the rise in AI’s use is only likely to increase as assess and energy demand increases.
SEE:” The Big Trend in the Data Center World”: NVIDIA’s Vision For AI Factories.
Parker also referred to the power industry’s response to DeepSeek’s unmatched Artificial as “kneejerk.” Energy company stock prices dropped when the Chinese AI company’s effective, affordable R1 model was introduced because investors feared that its technology had spread throughout the sector and significantly lower demand for data center energy in the future.
The type used by DeepSeek may not be as effective as it first thought. The International Energy Agency discovered that the inference technique it employs to generate responses uses a considerable amount of electricity, despite not requiring as little computing power or using as much energy during training.
Taxes stifle trust in the construction of long-term AI data centers.
The US shares a trade imbalance with all countries, but President Trump announced new bilateral tariffs earlier this month, which caused the stock prices of several tech companies to drop. Investors feared a stifled global supply chain, higher production costs, and decreased consumer electronics and AI system need.
Since then, there have been reports that both Microsoft and Amazon have been reversing their information center agreements, which sparked Miller and Parker’s comments on Thursday. According to CNBC, an analyst word for a client from Wells Fargo reported on Monday that Amazon Web Services had “paused a part of its rental conversations on the collocation side.” In 2025, the company is anticipated to spend an additional$ 26.3 % per quarter, which will increase its total annual capital expenditures to over$ 100 billion, largely driven by investments in AI.
Notice: Power Outages Kiosk Growth in UK and Europe Data Centers
However, Miller claimed in a LinkedIn post on Tuesday that” there haven’t been any new important changes in our development plans” and that “he continues to see strong need for both Generative AI and foundational loads on AWS.” He did acknowledge that the business was prepared for changes.
Noelle Walsh, the head of Microsoft’s cloud operations, stated earlier this month on LinkedIn that the cloud giant was” slowing or pausing some early-stage ( data center ) projects.” This came after traders in February reported that Microsoft had reneged on some AI data center leases.
According to CNBC, it does appear that the hyperscalers are being more selective about leasing huge clusters of strength and tightening the pre-lease windows for power that can be delivered before the end of 2026.
Numerous businesses had been announcing plans to build new services in the US prior to the tax presentations. The company pledged to spend more than$ 160 billion on developing data centers in the nation in March, making it the “largest individual foreign direct investment in US story.”
The Stargate initiative, which saw firms like SoftBank, OpenAI, and Oracle dedicate$ 500 billion to conceptual AI system in the US in January, was launched. Microsoft also announced plans to invest$ 80 billion in AI-enabled data centers in 2025 the same month.
