News
Amid growing concerns about a potential economic downturn, there has been heightened attention on whether cloud service providers (CSPs) are scaling back their investments in AI. However, according to CNBC and Reuters, executives from Amazon and Google both stated that the pace of building AI data centers remains strong and shows no signs of slowing.
As noted by CNBC, Amazon Vice President of Global Data Centers Kevin Miller said the company continues to see strong demand for AI data centers, with growth expected to persist in the long term.
Recently, according to a CNBC report, Amazon reportedly postponed certain commitments related to new data center leases, particularly in overseas markets.
According to TrendForce, there is no significant change in AWS’s order momentum, indicating continued commitment to AI ASIC expansion. However, rising geopolitical risks may lead AWS and other major cloud providers to adopt a more cautious approach to capital spending, potentially slowing the pace of AI infrastructure growth.
Google Backs AI Spending, Boosts Search Capabilities
Another major cloud provider reinforcing its commitment to AI this week is Google. As indicated by Reuters, Alphabet—the parent company of Google—reaffirmed its aggressive AI expansion plans and upheld its USD 75 billion capital expenditure forecast for the year. The company emphasized that its investments in AI are driving returns, particularly in its core advertising business.
Notably, Reuters highlights that Google sees AI integration in its search engine as a key driver of advertising value, enabling more effective campaign targeting for advertisers.
AI Boom Shows No Signs of Slowing, Drives Soaring Power Demand
Meanwhile, CNBC reports that NVIDIA sees no signs of a slowdown, with Senior Director of Corporate Sustainability Josh Parker noting that both compute and energy demands are rising due to AI. This view is echoed by Anthropic co-founder Jack Clark, who estimates that 50 gigawatts of new power capacity—equivalent to roughly 50 nuclear plants—will be needed by 2027 to support AI growth.
Read more
(Photo credit: Google)
