Issue #13: Amazon and Nvidia Reaffirm AI Data Center Demand: A Strategic Shift in Global Compute

Amazon and Nvidia just made it clear: AI infrastructure demand isn’t slowing it’s entering a smarter, more strategic era. Here’s what’s shifting and what it means for the future of global compute.

Apr 27, 2025

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In This Issue

Global Data Center News Roundup — Why energy, sovereignty, and specialization are reshaping infrastructure investment worldwide.
Amazon and Nvidia’s Strategic Signal — What two of the biggest players just revealed about the real future of AI infrastructure.
The New Growth Bottlenecks — How energy availability, sovereign policy, and hyperscale design constraints are rewriting the playbook.
New Global Hotspots — Where next-generation AI infrastructure is scaling fastest, from Hyderabad to Abu Dhabi.

Dear Reader,

The AI infrastructure boom isn't slowing down. It’s entering a smarter, more strategic phase.

This week, Amazon and Nvidia reaffirmed that AI data center demand remains strong, despite market fears, recession worries, and growing energy constraints. Their message is clear: scaling AI infrastructure isn’t just about ambition anymore. It’s about power, policy, and precision.

Infrastructure growth is evolving from a race for capacity to a race for energy-secure, sovereign-aligned, AI-specialized ecosystems.

In this issue, we dive deep into:

How Amazon and Nvidia’s strategies signal a fundamental shift in global infrastructure expansion.
Why energy constraints, sovereign data policies, and hyperscale specialization are now the primary levers of success.
Where the next great AI infrastructure hubs are rising and what it will take to compete.

The next decade of AI infrastructure won’t belong to those who build the biggest. It will belong to those who build smartest, fastest, and where it matters most.

Let’s dive in.

North America

Amazon Freezes Global Data Center Projects Amid Power Crunch Amazon has joined Microsoft in pausing new data center developments, signaling growing pressure from energy shortages and permitting delays. This shift could reset timelines for AI infrastructure expansion across key global markets.

Tariffs on Building Materials Could Raise U.S. Data Center Costs New U.S. tariffs on steel, aluminum, and construction components threaten to drive up data center development costs by 10–15%. Rising expenses could slow down hyperscaler expansion plans just as AI infrastructure demand accelerates.

Stonepeak Commits $1.5B to New Hyperscale Venture Stonepeak launched Montera Infrastructure with a $1.5 billion equity commitment focused on North American hyperscale projects. The move highlights sustained private equity confidence despite growing regulatory and energy headwinds.

Europe

UK’s 5GW AI Data Center Ambition Takes Center Stage Frontier and Ethos are partnering to build one of Europe’s largest AI-focused campuses, targeting the UK’s booming demand for sovereign compute. If completed, it would mark a transformative expansion of Europe’s AI infrastructure footprint.

Marseille’s Digital Boom Raises Sustainability Alarms Marseille’s meteoric rise as a digital hub is straining local power grids, real estate, and water resources. The city’s success story highlights the hidden costs of hyperscale and subsea infrastructure growth in dense urban areas.

Scotland Leverages Renewables to Power AI Infrastructure Scotland is positioning itself as a leader in green AI infrastructure by channeling its abundant renewable energy into data center projects. This sustainable focus could give Scotland an edge as AI-related power demands skyrocket.

Asia-Pacific

Adani's $10B Push Aims to Make India an AI Infrastructure Giant Adani’s $10 billion AI data center expansion is repositioning India as a heavyweight in global AI infrastructure development. The investment signals a power shift as Asia stakes a stronger claim in the AI economy.

Keppel’s $580M Fund Backs Southeast Asia’s AI Future Keppel’s latest fund closure targets AI and cloud data centers across Singapore, Vietnam, and Malaysia. The deal confirms institutional investor appetite for hyperscale infrastructure in fast-growing digital markets.

Viettel Breaks Ground on Vietnam’s First Hyperscale Facility Viettel’s Ho Chi Minh City development marks Vietnam’s entry into the regional hyperscale landscape. The project reflects Southeast Asia’s accelerating push to capture AI and cloud data center growth.

Middle East & Africa

UAE Expands AI Infrastructure with Khazna’s New Data Centers Khazna has broken ground on two AI-optimized facilities in Abu Dhabi, strengthening the UAE’s leadership in Middle East digital infrastructure. The expansions align with national strategies to anchor sovereign AI capabilities.

Microsoft and du Partner on $544M Dubai Hyperscale Build Microsoft’s latest deal with du will deliver a major hyperscale project in Dubai, enhancing regional AI and cloud capabilities. The partnership reinforces Dubai’s positioning as a digital and AI powerhouse.

Saudi Arabia Introduces AI Hub Law Offering Data Sovereignty Saudi Arabia’s new AI-focused legislation grants foreign firms localized data control to attract AI investment. The move could accelerate hyperscaler entry into the Kingdom’s fast-evolving digital market.

South America

TikTok Parent ByteDance Explores Data Center Build in Brazil ByteDance is evaluating a major data center project in Brazil to support regional AI and cloud service growth. This expansion could solidify Brazil’s role as Latin America’s emerging AI infrastructure hub.

Amazon and Nvidia Reaffirm AI Infrastructure Demand

Executive Summary

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