tech
An industrywide power crunch is changing how Amazon runs its e-commerce empire
Amazon is spreading e-commerce workloads across more AWS regions as power and capacity constraints reshape cloud computing in the AI era.
TL;DR
- Amazon is redesigning its cloud setup for its e-commerce business through an initiative called 'Region Flex'.
- The project aims to reduce concentration in large AWS regions and operate in more locations at a smaller scale.
- This change is driven by increasing constraints on power and data center capacity, amplified by the AI boom.
- Internal documents show efforts to reduce Amazon's e-commerce footprint in major AWS hubs like Northern Virginia and Dublin.
- Region Flex is tracked as an 'S-Team goal' and aims to improve resilience during AWS disruptions.
- Distributing workloads may increase infrastructure costs for some services, with estimated one-time spending of $90 million in 2025.
- Despite expansion efforts, Amazon expects power constraints to persist, with demand likely to outstrip supply through 2027.