Amazon Secures Billions in Nvidia Racks Amid Power Shortages

Amazon Web Services has implemented an Early Rack Receipt process to secure Nvidia GB300 server racks before they can be fully deployed. Internal communications reveal the company expected to receive approximately $5 billion in racks at United States facilities, with an additional $3 billion projected monthly. This strategy is designed to secure scarce AI hardware ahead of competitors.

Infrastructure bottlenecks and data center power shortages have left some of this equipment idle in intermediary warehouses, creating a situation known as dark GPUs. An Amazon spokesperson defended the practice as best business practice, explaining that the company stages hardware near deployment sites to install it as capacity becomes available.

The aggressive procurement has pressured cash flow, with Amazon expecting roughly $220 billion in capital expenditures this year. CEO Andy Jassy maintains that the company has a clear line of sight to strong returns from these AI investments.