AWS and Microsoft Scale Back Data Centers – Why Blockchain Is Now Key for AI

• Energy limits and demand pressures are accelerating the shift toward decentralized models like Aethir and XRP-based networks.

• With the rise of decentralized AI, XRP’s utility is expanding into identity, liquidity, and decentralized compute systems.

The AI gold rush that once gripped Silicon Valley is now showing cracks. Amazon Web Services (AWS) and Microsoft, two of the biggest names in cloud computing, are pulling back on their massive AI data center expansion plans.

According to a recent tweet post by AWS Developers, it was stated how multimodal AI transforms security, documentation, and finance, and how these capabilities are now available. Despite sky-high demand for AI processing power, a critical bottleneck has emerged—energy.

See how multimodal AI transforms security, documentation, finance, and more. Hear from @AIatMeta's Llama engineering lead about turning images into actionable insights. Discover why developers are moving beyond text-only models. https://t.co/Y7QvFoh372#AWS #LlamaCon2025 pic.twitter.com/9DekZo2LoP

— AWS Developers (@awsdevelopers) April 29, 2025

This energy crunch is more than just a logistics issue; it’s a sign that the traditional, centralized data infrastructure model may be too rigid and resource-hungry to support the exponential pace of AI advancement.

Blockchain’s Moment: Enter DeFAI

As recent market trends indicate, this shifting landscape is breathing life into an idea that, until recently, felt more conceptual than concrete—decentralized, blockchain-based AI infrastructure. Kai Wawrzinek, co-founder of Impossible Cloud Network, believes this is the turning point.

Adding to the development, projects like Aethir are turning this theory into practice. Aethir’s decentralized “GPU-as-a-service” model has attracted major attention for its ability to tap idle computing power from around the globe.

Ripple (XRP) Price Market Condition

In line with a previous CNF report about the Ripple CTO and AWS exploring the explosive $20 trillion AI-blockchain opportunity, despite AI struggling to keep up with growing demand and centralized systems falling behind, blockchain is stepping up—and Ripple (XRP) is playing a key role.

With AWS and Microsoft slowing their data center growth, attention is shifting to more flexible, efficient tech like XRP. Furthermore, with that being said, beyond payments, XRP is now being used in areas like digital ID, liquidity, and even powering decentralized AI networks.

As of now, XRP is trading at around $2.24, slightly down for the day by about 1.50% and up 0.53% in the past week, according to Coin Market Cap data. See the XRP price chart below to see how market trends affect Ripple (XRP)’s price.