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.
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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.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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