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The National Development and Reform Commission (NDRC) said the order was made under Chinese laws and regulations and instructed the parties involved to withdraw from the deal.
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CEO Gary Wojtaszek said the pause covers all of the company’s planned data centre developments in the region.
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The company has begun talks with prospective buyers and industrial partners.
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India remains a major market for AWS, with demand coming from a broad base that includes enterprises, digital platforms and startups.
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The 830km rail scheme is projected to require as much as $5bn in investment and is due to be completed by 2030.
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The project will be the company’s first data centre in the Alps region, extending its infrastructure presence in Europe.
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The US tech giant said the funding package – which it described as its largest in Australia – will be used to grow its Azure AI supercomputing and cloud footprint locally.
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