Amazon; Getty Images; Alyssa Powell/BIElectricity and labor headwinds slow Amazon's data center buildout.The company's predicament highlights challenges faced by the broader cloud industry.Amazon is making huge investments in data center capacity, including the use of nuclear energy.Amazon is spending heavily on data centers to support booming AI workloads, putting it on pace to build 240 new facilities by 2040, according to one estimate.These plans are increasingly running into physical constraints that are slowing the buildout, according to an internal document, people familiar with the matter, and emails obtained through a public-records request."Across the AMER region, we are experiencing headwinds in power, zoning and permitting, water, and workforce/labor that are providing challenges to our long-term capacity growth," the internal document stated, referring to the Americas market, Amazon's largest.As the biggest cloud provider, Amazon's predicament highlights broader problems facing the tech industry as generative AI upends the status quo.
Amazon's Ai Data Center Dream Runs Into The Reality Of 'zombie' Facilities, Higher Costs, And Labor Shortages
ekim@businessinsider.com (Eugene Kim), Business Insider
Wed, 10/23/2024 - 2:00am
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