Amazon and Nvidia Refute Claims of AI Data Center Slowdown, Emphasizing Strong Demand

Amazon and Nvidia say AI data center demand is not slowing down

OKLAHOMA CITY -- Amazon and Nvidia executives said Thursday that the construction of artificial intelligence data centers is not slowing down, as recession fears have some investors questioning whether tech companies will pull back on some their plans. "There's been really no significant change," Kevin Miller, Amazon's vice president of global data centers, said at a conference organized by the Hamm Institute for American Energy. "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." The comments run contrary to worrying buzz building on Wall Street about tech companies changing data center buildout plans. Wells Fargo analysts said Monday that Amazon Web Services is pausing some leases on data center commitments, citing industry sources. The magnitude of the pause was unclear, the analysts said, but the comments raised fears that Amazon was doing something similar to Microsoft's recent move to pull back on some early stage projects. Miller said "there's been little tea leaf reading and extrapolating to strange results" about Amazon's plans. Nvidia is also not seeing signs of a slowdown, said Josh Parker, the chipmaker's senior director of corporate sustainability. "We haven't seen a pullback," Parker said. The advent China's artificial intelligence startup DeepSeek sparked a selloff in power stocks earlier this year as investors worried that its AI model is more efficient and data centers might need as much energy as originally anticipated. But Parker said Nvidia sees compute and energy demand only rising due to AI, describing the reaction to DeepSeek as "kneejerk." Anthropic co-founder Jack Clark said 50 gigawatts of new power capacity will be needed by 2027 to support AI. That's the equivalent of about 50 new nuclear plants. "Anthropic and the other AI companies, what we're seeing is tremendous growth in the need for new baseload power. We're seeing unprecedented growth," Clark said. The executives were speaking at a gathering of tech and energy companies at a conference in Oklahoma City organized by the Hamm Institute to discuss how the U.S. can address the growing energy needs for artificial intelligence. There's a growing consensus in both industries that natural gas will be needed to meet the power needs.

Amazon and Nvidia say AI data center demand is not slowing down

OKLAHOMA CITY -- Amazon and Nvidia executives said Thursday that the construction of artificial intelligence data centers is not slowing down, as recession fears have some investors questioning whether tech companies will pull back on some of their plans. "There's been really no significant change," Kevin Miller, Amazon's vice president of global data centers, said at a conference organized by the Hamm Institute for American Energy. "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." The comments run contrary to worrying buzz building on Wall Street about tech companies changing data center buildout plans. Wells Fargo analysts said Monday that Amazon Web Services is pausing some leases on data center commitments, citing industry sources. The magnitude of the pause was unclear, the analysts said, but the comments raised fears that Amazon was doing something similar to Microsoft's recent move to pull back on some early stage projects. Miller said "there's been little tea leaf reading and extrapolating to strange results" about Amazon's plans. Nvidia is also not seeing signs of a slowdown, said Josh Parker, the chipmaker's senior director of corporate sustainability. "We haven't seen a pullback," Parker said. China's artificial intelligence startup DeepSeek sparked a sell-off in power stocks earlier this year as investors worried that its artificial intelligence model is more efficient and data centers might need as much energy as originally anticipated. But Parker said Nvidia sees compute and energy demand only rising due to AI, describing the reaction to DeepSeek as "kneejerk." Anthropic co-founder Jack Clark said 50 gigawatts of new power capacity will be needed by 2027 to support AI. That is the equivalent of about 50 new nuclear plants. "Anthropic and the other AI companies, what we're seeing is tremendous growth in the need for new baseload power. We're seeing unprecedented growth," Clark said. The executives were speaking at a gathering of tech and energy companies at a conference in Oklahoma City organized by the Hamm Institute to discuss how the U.S. can address the growing energy needs for AI. There is a growing consensus in both industries that natural gas will be needed to meet the power needs.

Amazon And Nvidia Dismiss Fears Of AI Data Center 'Pullback': 'We Continue To See Very Strong Demand' - Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN)

Despite recession fears and market speculation, tech giants Amazon AMZN and Nvidia NVDA insist that the demand for artificial intelligence data centers remains robust. What Happened: Executives from Amazon and Nvidia dismissed concerns about a potential slowdown in the construction of AI data centers, according to a report by CNBC. Both executives spoke at a conference in Oklahoma City hosted by the Hamm Institute for American Energy on Thursday, where they addressed the rising energy demands driven by AI. They agreed that natural gas will be essential to meeting those power requirements. Amazon's vice president of global data centers, Kevin Miller, stated at a conference that there has been "no significant change" in demand. "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," stated Miller. Meanwhile, Josh Parker, Nvidia's senior director of corporate sustainability, echoed Miller's sentiment, stating that Nvidia has not observed any signs of a slowdown. Parker dismissed concerns sparked by AI startup DeepSeek's efficient model, which led to a sell-off in power stocks earlier this year. He described the reaction as "kneejerk". "We haven't seen a pullback," asserted Parker. SEE ALSO: US Treasury Hits Record $15 Billion In Customs And Excise Tax Haul Amid Trump's Trade Policies Why It Matters: The recent statements from Amazon and Nvidia executives contradicts recent speculation by Wells Fargo analysts about Amazon Web Services pausing some data center leases, particularly in international markets. This move followed a similar one by Microsoft Corporation MSFT. On this, Miller stated, "there's been little tea leaf reading and extrapolating to strange results" regarding Amazon's plans. Notably, AI data centers are transforming global energy markets due to their high electricity demands. The surge in AI has led to a significant increase in electricity consumption, with AI-driven workloads contributing significantly to the global data center electricity consumption, which reached 460 terawatt-hours in 2024, according to the International Energy Agency. The growing energy needs for AI have led to companies investing heavily in localized power solutions, such as microgrids and battery storage systems, to stabilize supply. This trend has boosted demand for commodities like lithium and nickel, essential for batteries, with lithium prices up 15% since January 2025, according to S&P Global Commodity Insights. Amazon holds a Growth rating of 94.14% and a quality rating of 67.66%, according to Benzinga's Proprietary Edge Rankings. For an in-depth report on more stocks and insights into growth opportunities, sign up for Benzinga Edge. Price Action: Amazon stock climbed 3.29% to close at $186.54 on Thursday, while Nvidia climbed 3.6% to close at 106.43, as per data from Benzinga Pro. READ MORE: Mark Zuckerberg's Wife Priscilla Chan's Tuition-Free School To Shutdown, $50 Million Support Pledged For Transition - Benzinga Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AMZNAmazon.com Inc$189.991.85%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum48.20Growth94.15Quality67.83Value50.08Price TrendShortMediumLongOverviewMSFTMicrosoft Corp$387.630.09%NVDANVIDIA Corp$107.721.21%Got Questions? AskWhich AI data center stocks could thrive now?How will energy companies adapt to AI needs?What implications for lithium prices from AI demand?Are there microgrid investments worth exploring?How could Amazon capitalize on AI growth?What power stocks might recover after recent sell-off?Which technology firms could benefit from AI's rise?How will AI affect natural gas demand moving forward?What opportunities exist in battery storage markets?What does Nvidia's outlook mean for investors?Powered ByMarket News and Data brought to you by Benzinga APIs

Tech stocks climb as Nvidia, Amazon reject claims of AI buildout slowdown By Investing.com

Investing.com -- Shares of NVIDIA Corporation (NASDAQ:NVDA) and Amazon.com Inc (NASDAQ:AMZN) rose 3.2% and 3% respectively Thursday after executives from both companies pushed back on reports suggesting a slowdown in artificial intelligence infrastructure spending. Speaking at a conference reported on by CNBC, the companies said demand for compute power and data center capacity remains strong, directly addressing recent concerns from investors. Kevin Miller, Amazon's vice president of global data centers, acknowledged that speculation about paused leasing had generated noise in the market but insisted the company's outlook was unchanged. He told the audience there had been "no significant change" to data center plans, and criticized what he called "tea leaf reading" of Amazon's long-term strategy. Nvidia's senior director of corporate sustainability, Josh Parker, echoed Miller's comments, stating the chipmaker has not observed any reduction in demand for AI-related compute power. He downplayed industry concerns that a new model from Chinese AI firm DeepSeek would slash energy needs, characterizing that reaction as a "kneejerk." Much of the discussion centered not just on data center construction, but the massive energy capacity required to support AI at scale. Anthropic's co-founder Jack Clark projected that 50 gigawatts of new power generation, the equivalent of 50 nuclear reactors, will be needed by 2027 as AI adoption grows. At the Hamm Institute for American Energy conference in Oklahoma City, executives from tech and energy firms pointed toward natural gas as a viable backbone for meeting surging electricity needs. With AI systems expanding rapidly, the convergence of these industries is becoming increasingly visible. Despite reports earlier in the week, including by Wells Fargo (NYSE:WFC) analysts citing AWS leasing slowdowns, 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.