Amazon Web Services has allegedly slammed on the brakes on multiple future data center leases, mirroring a strategic slowdown in how cloud behemoths are adapting to a rapidly changing infrastructure environment. AWS suspended some of its colocation leasing activity—particularly in foreign markets—in tandem with Microsoft’s recent slowdown on similar projects, Wells Fargo analysts say.

This rescaling does not mark retreat. Instead, it portends a nuanced reaction to increased worldwide economic pressure, the increase in tariffs, and surging infrastructure investments attributed to the meteoric boom of AI. Whereas both Microsoft and AWS aren’t scrapping committed deals, both seem pickier in establishing new ones.

Earlier this year, Microsoft shelved up to 2GW of previously planned data center projects. Its president of cloud operations characterized the decision as part of a deliberate strategy shift—necessary when scaling at unprecedented levels. “We are slowing or pausing some early-stage projects,” he noted, emphasizing the company’s focus on aligning infrastructure spending with evolving customer demand.

AWS, for its part, has pushed back against concerns of a broader retreat. Kevin Miller, AWS’s VP of Data Centers, clarified via LinkedIn that what’s unfolding is “routine capacity management,” not a fundamental change in trajectory. He framed the adjustments as a practical response to unpredictable cost structures and shifting customer needs: “Sometimes we find that we need more capacity in one location and less in another.”

Still, the bigger picture is hard to ignore. Hyperscalers are juggling record demand for AI infrastructure with economic volatility. At the same time, high-stakes deals—like OpenAI’s $500 billion Stargate initiative—are redrawing the map for cloud providers. Microsoft’s exclusive arrangement with OpenAI has softened, and rivals like Google and Meta are snapping up abandoned leases.

For now, AWS and Microsoft continue to spend aggressively—Microsoft expects to funnel $80 billion into data center capex in 2025. Yet the recent leasing slowdowns underscore a more cautious, data-driven approach to AI-era expansion. Cloud may still be booming, but in today’s economy, even the biggest players are learning to pace their ambition.