Amazon is constructing a colossal data center in Indiana, spanning 1,200 acres and designed to support AI operations in collaboration with Anthropic. This facility will consume 2.2 gigawatts of electricity, marking a significant leap in the scale of data centers as the tech industry races to accommodate the growing demands of artificial intelligence.

Amazon has decided to scale back its ambitious AI data center plans, following a similar retreat by Microsoft. The move reflects the growing caution in the tech industry regarding the rapid expansion of cloud infrastructure amid economic uncertainties and changing market demands.