Executives for Amazon (NASDAQ:AMZN) and Nvidia (NASDAQ:NVDA) dismissed any concerns over demand for data centers powering artificial intelligence slowing down any time soon, according to a report by CNBC.
"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," said Kevin Miller, Amazon's vice president of Global Data Centers, at the Hamm Institute for American Energy Conference today in Oklahoma City, according to the report.Nvidia and Amazon shares were both up 3% during afternoon trading.
On Monday, Wells Fargo issued an investor note that said Amazon was pausing some of its data center leases. However, Miller issued a response that it was only "routine capacity management, and there haven't been any recent fundamental changes in our expansion plans."
Nvidia, which produces the high-end processors used in these AI data centers, echoed Miller's comments.
"We haven't seen a pullback," said Josh Parker, Nvidia's senior director of corporate sustainability, according to the report.
Anthropic co-founder Jack Clark, who was also at the event, said 50 gigawatts of new power capacity will be need to come online by 2027 to support data center growth.
To put that into perspective, a single gigawatt can power more than 750,000 homes. According to the U.S. Department of Energy, it would require about 1.9M photovoltaic panels to produce 1 GW.
