Technology giants Amazon (AMZN) and Nvidia (NVDA) say that the construction of artificial intelligence (A.I.) data centres remain strong despite growing fears of a U.S. recession.
There were concerns in recent weeks that technology companies such as Amazon and Microsoft (MSFT) were pulling back their spending on A.I. data centres amid heightened uncertainty.
“We continue to see very strong demand, and we’re looking both in the next couple years as well as long term and seeing the numbers only going up,” said Kevin Miller, Amazon’s vice- president of global data centers at a recent energy conference.
The comments come days after analysts at Wall Street bank Wells Fargo (WFC) said that Amazon Web Services (AWS) is pausing some leases on data centres.
At the same time, Microsoft recently acknowledged that it has paused some leases on early stage A.I. data centre projects.
Echoing Amazon’s comments is chipmaker Nvidia, which says it is also not seeing signs of a slowdown in A.I. centre demand.
Josh Parker, Nvidia’s senior director of corporate sustainability, said at the same conference that, “We haven’t seen a pullback,” in A.I. data centre spending or construction.
The unveiling of China’s A.I. start-up DeepSeek sparked a selloff in power and technology stocks earlier this year as investors worried that it’s A.I. model is more efficient and that as many data centres as planned might not be needed.
But Parker said Nvidia is seeing compute and energy demand rising due to A.I., describing the reaction to DeepSeek as “kneejerk.”
The executives were speaking at a gathering of technology and energy companies to discuss how the U.S. can address the growing energy needs for A.I. technologies.