Slowdown in AWS data center leasing plans poses little threat to CIOs

Oracle, according to Westfall, is committed to investing $10 billion in 2025 to build 100 new data centers and expand 66 existing ones, aiming to double its capacity this year.

Likewise, Google is investing $75 billion in 2025 for data center construction, focusing on AI and cloud infrastructure, with projects such as a $600 million facility in Mesa, Arizona, and a $2 billion data center in Fort Wayne and Indiana underway, Westfall said.

Meta, too, plans to spend up to $65 billion in 2025, a sizable bump up from $40 billion in 2024, primarily for data center expansion to support AI (Llama models, Meta AI) and metaverse workloads, Westfall added.

However, these expansion plans will not result in the relatively smaller players catching up with AWS and Microsoft.

“For smaller players like Google and Oracle, catching up with AWS and Microsoft would require historically large capital investments that likely aren’t justified by their current growth rates,” Alletto said.