Reposted by Charlie Williams
Arthur Schopenhauer, German ‘philosopher of pessimism’, died #OTD 1860, whose work on the Will influenced philosophers, scientists & writers including Nietzsche, Einstein, Schrödinger, Tolstoy, Thomas Mann, Samuel Beckett.
Portrait by Ludwig Ruhl, 1815, Universitätsbibliothek Frankfurt am Main
![Oh, shit! A report from Wells Fargo analysts (called "Data Centers: AWS Goes on Pause") says that Amazon has "paused a portion of its leasing discussions on the colocation side...[and while] it's not clear the magnitude of the pause...the positioning is similar to what [analysts have] heard recently from Microsoft, [that] they are digesting aggressive recent lease-up deals...pulling back from a pipeline of LOIs or SOQs."
Some asshole is going to say "LOIs and SOQs aren't a big deal," but they are. I wrote about it here.
"Digesting" in this case refers to when hyperscalers sit with their current capacity for a minute, and Wells Fargo adds that these periods typically last 6-12 months, though can be much shorter. It's not obvious how much capacity Amazon is walking away from, but they are walking away from capacity. It's happening.
But what if it wasn't just Amazon? Another report from friend of the newsletter (read: people I email occasionally asking for a PDF) analyst TD Cowen put out a report last week that, while titled in a way that suggested there wasn't a pull back, actually said there was.
Let's take a look at one damning quote:
...relative to the hyperscale demand backdrop at PTC, hyperscale demand has moderated a bit (driven by the Microsoft pullback and to a lesser extent Amazon, discussed below), particularly in Europe, 2) there has been a broader moderation in the urgency and speed with which the hyperscalers are looking to take down capacity, and 3) the number of large deals (i.e. +400MW deals) in the market appears to have moderated.
In plain English, this means "demand has come down, there's less urgency in building this stuff, and the market is slowing down. Cowen also added that it "...observed a moderation in the exuberance around the outlook for hyperscale demand which characterized the market this time last year."
Brother, isn't this meant to be the next big thing? We need more exuberance! Not less!](https://cdn.bsky.app/img/feed_thumbnail/plain/did:plc:qc6xzgctorfsm35w6i3vdebx/bafkreig6slvxsazwqancvj7fkcj4qcg46n3t256dlhyohzhvp7mrtirtoa)
