Data Center Rundown: April 2025

25 April 2025

We’re back with April’s edition of the Data Center Rundown! This month, the data center industry has been buzzing with significant developments, from major investments and expansions to strategic shifts and emerging challenges.

Let's dive into the top stories that have shaped the landscape this April.​

What to expect:

• AWS halts major data center leases
• US tariffs create uncertainties for AI infrastructure
• Stack launches initiative to tackle data center skills shortages
• 4.5GW AI data center revealed for Pennsylvania
• …. And other top headlines!

AWS pauses leases amid market jitters

AWS is reportedly hitting pause on several major data center leasing deals, following Microsoft’s recent decision to scale back its own commitments. According to a Wells Fargo investor note, Amazon had been expected to finalize new leases in Q1 2025 but has now delayed those decisions – signaling a cautious shift in strategy despite continued demand for AI and cloud services.

The move reflects growing tension in the hyperscale market: developers are racing to meet surging demand, but hyperscalers are getting pickier amid power constraints, rising costs, and permitting delays. While this may not signal a full slowdown, it's a clear recalibration that could soften leasing volumes in the near term.

Vertiv's surge amid AI data center demand

Elsewhere, Vertiv Holdings experienced a remarkable 24% year-over-year revenue growth in Q1 2025, driven by the escalating demand for AI-powered data centers. The company's stock soared nearly 21% following the announcement, underscoring investor confidence in Vertiv's position in the AI infrastructure market.

CEO Giordano Albertazzi highlighted the company's accelerated growth compared to the overall market, which is expected to expand 9%-12% annually starting in 2024. ​

AI boom faces headwinds from tariffs and economic uncertainty

The rapid expansion of AI infrastructure is encountering challenges due to global economic uncertainties and escalating US-China trade tensions. The imposition of 145% tariffs on Chinese goods has disrupted supply chains vital to AI infrastructure, particularly affecting the availability and cost of essential data center equipment.

Companies like Alphabet and Microsoft have reaffirmed capital investment plans totaling $155 billion for 2025, yet signs of caution are emerging. ​

Microsoft pauses $1B AI data center project in Ohio

Microsoft announced a slowdown or pause in some of its AI data center projects, including a $1 billion initiative in Licking County, Ohio. The decision reflects recalibrated expectations surrounding the infrastructure needed to support AI technologies. Microsoft plans to repurpose two of its three Ohio properties for farmland.

Launch of STACK Academy in EMEA

Stack announced the launch of STACK Academy, a workforce development initiative aimed at addressing skill shortages in the data center industry across Europe. The program will offer specialized training in Italy, Norway, and Switzerland, with an initial intake of 55 participants in 2025. ​

4.5GW AI Data Center Planned in Pennsylvania

A major transformation is underway in Homer City, Pennsylvania, where developers plan to repurpose a shuttered coal power plant into a massive AI-focused data center campus. The former Homer City Generating Station – once one of the largest coal-fired plants in the US – will be reborn as a 4.5-gigawatt hyperscale site powered by natural gas.

The $1b redevelopment is being led by local firm R Squared Energy, in partnership with Ironclad Energy Partners and Calpine Energy, and aims to support AI training, HPC, and cloud workloads.

Colorado advances tax breaks to attract data centers

Colorado lawmakers are advancing legislation to offer nearly $17m in tax breaks aimed at attracting data centers, particularly those supporting AI technologies. The proposed incentives focus on providing state sales and use tax exemptions to stimulate data center development, which proponents argue could create jobs and bolster the power grid. ​

Wrapping Up April: A Market in Motion

This month delivered a nuanced snapshot of a data center industry riding the edge of explosive growth and calculated caution. On one hand, Vertiv's soaring revenues and STACK’s workforce investments in EMEA show the sector’s relentless push to build capacity and talent for the AI era. On the other, AWS and Microsoft's leasing slowdowns underscore how hyperscalers are starting to tap the brakes, navigating power shortages, rising costs, and geopolitical headwinds like tariffs impacting AI supply chains.

As we head into May, all eyes will be on whether this is a temporary reset or the start of a more strategic phase in hyperscale expansion. With legislative incentives brewing in places like Colorado and major capital commitments still on the table, next month’s moves could tell us if the AI data center boom is simply pausing for breath – or recalibrating for an even bigger leap. Stay tuned!

In the meantime, head over to our resources hub for more of the latest data center insights and opinions from our team.