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Amazon has put on hold negotiations for the construction of multiple data centers across Europe, while Microsoft has scaled down a $1 billion project in Ohio. These adjustments or halts to certain international data center plans by the two tech giants may signal a softening demand for AI infrastructure. This development has raised industry concerns regarding the economic landscape and the repercussions of ongoing trade wars. Despite Meta and other companies continuing to actively expand their data center footprints, they confront challenges like grid pressure and escalating costs. The CEO of Microsoft has remarked that AI has yet to significantly propel economic growth in the United States. Amazon is set to release its financial report in May, potentially shedding more light on the dynamics shaping AI demand.
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