Amazon's Data Centers Face Delays and Rising Costs Due to Power and Labor Shortages, Impacting AWS and AI Ambitions

According to internal documents obtained by Insider, Amazon is facing significant challenges in expanding its data center operations, which could hinder the growth of its cloud computing service AWS and its AI ambitions. The company is grappling with power shortages, labor constraints, and rising construction costs, leading to delays in opening new data centers. These issues are exacerbated by the increasing demand for cloud services and the need for more computing power to train AI models. The documents reveal that Amazon has postponed the launch of at least 17 data centers across the US, Canada, and Asia-Pacific regions. The delays and higher costs could impact Amazon’s ability to meet the growing demand for cloud services and AI capabilities, potentially giving competitors like Microsoft and Google an advantage in these lucrative markets.

Source: https://www.businessinsider.com/amazon-data-centers-delays-costs-power-labor-shortages-aws-ai-2024-10