icon
icon
icon
icon
Upgrade
Upgrade

News /

Newswires /

Amazon, NVIDIA Continue Investing in AI Data Centers Despite Economic Concerns

AinvestThursday, Apr 24, 2025 9:50 pm ET
1min read

Amazon and NVIDIA's executives have assured continued investment in AI data centers despite economic recession concerns. Amazon's VP of Global Data Centers, Kevin Miller, and NVIDIA's Senior Director of Corporate Sustainability, Josh Parker, expressed optimism about future growth and long-term demand. The development of AI data infrastructure remains a priority for these tech giants, driven by the increasing power demand fueled by AI advancements.

Ask Aime: "Will Amazon and NVIDIA continue investing in AI data centers despite economic recession?"

Amazon and NVIDIA executives have dismissed concerns about a slowdown in AI data center demand, expressing confidence in continued growth and investment. At the Hamm Institute for American Energy Conference in Oklahoma City, Amazon's Vice President of Global Data Centers, Kevin Miller, and NVIDIA's Senior Director of Corporate Sustainability, Josh Parker, both assured that demand remains strong and plans for expansion are unchanged.

Miller stated, "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" [1]. This optimism was echoed by Parker, who said, "We haven't seen a pullback" in demand for AI-related compute power [1].

The executives also addressed recent reports suggesting a slowdown in AI infrastructure spending. Miller acknowledged that speculation about paused leasing had generated noise in the market but insisted that Amazon's outlook remained unchanged. He criticized what he called "tea leaf reading" of Amazon's long-term strategy [1].

The development of AI data infrastructure remains a priority for these tech giants, driven by the increasing power demand fueled by AI advancements. Anthropic co-founder Jack Clark projected that 50 gigawatts of new power generation, equivalent to 50 nuclear reactors, will be needed by 2027 as AI adoption grows [1].

Despite reports of a slowdown in data center leasing, such as those cited by Wells Fargo analysts, Amazon and NVIDIA delivered a unified message: demand isn't slowing, and neither are their plans. "We’re looking both in the next couple years as well as long term and seeing the numbers only going up," Miller said, reinforcing Amazon’s ongoing investment trajectory [1].

These developments come amid broader economic recession concerns, but both companies remain committed to their AI strategies. The long-term promise of AI continues to justify continued spending, even if short-term returns are slow, according to some investors and analysts [2].

References:
[1] https://seekingalpha.com/news/4435146-nvidia-amazon-dash-concerns-of-ai-data-center-demand-slowing-report
[2] https://finance.yahoo.com/news/ai-boom-under-threat-tariffs-103407009.html

View Source

Comments

Add a public comment...
Post
No Comment Yet
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
You Can Understand News Better with AI.
Whats the News impact on stock market?
Its impact is
fork
logo
AInvest
Aime Coplilot
Invest Smarter With AI Power.
Open App