{"version":1,"type":"story","url":"https://digestai.news/story/amazon-stores-5-billion-in-nvidia-servers-due-to-power-shortages","json":"https://digestai.news/story/amazon-stores-5-billion-in-nvidia-servers-due-to-power-shortages.json","markdown":"https://digestai.news/story/amazon-stores-5-billion-in-nvidia-servers-due-to-power-shortages.md","slug":"amazon-stores-5-billion-in-nvidia-servers-due-to-power-shortages","headline":"Amazon stores $5 billion in Nvidia servers due to power shortages","summary":"Amazon is holding billions of dollars worth of Nvidia AI servers in warehouses because its data centers lack sufficient electricity to power them, according to a Business Insider report. Internal emails reviewed by the outlet indicate that Amazon Web Services (AWS) expected to receive approximately $5 billion worth of Nvidia GB300 server racks in August, with projections for an additional $3 billion worth each month for the foreseeable future. Although some sites had physical space for the equipment, they did not have the necessary power capacity, forcing the company to store the completed racks in intermediate facilities until infrastructure upgrades are complete.\n\nThis situation contributes to the \"dark GPU\" phenomenon, where expensive AI hardware sits idle due to power bottlenecks. The delays create significant financial strain, as companies must purchase hardware upfront while waiting for data centers to become operational. AWS infrastructure chief Prashant Kalyanaraman described the AI business as \"hugely free cash flow negative,\" expecting this trend to continue for another couple of years. Amazon plans to spend $220 billion on capital investments this year, and its free cash flow dropped to negative $7.6 billion for the 12 months ended June 30, a sharp decline from positive $18.2 billion in the previous year.","keyPoints":["Amazon stored $5 billion in Nvidia GB300 racks in warehouses due to data center power shortages.","Internal emails projected an additional $3 billion worth of Nvidia server racks arriving each month.","Amazon's free cash flow fell to negative $7.6 billion for the 12 months ended June 30."],"whyItMatters":"Power shortages are becoming a critical bottleneck for AI infrastructure, forcing companies to hold expensive hardware idle. This ties up capital and highlights the gap between hardware procurement and grid capacity, potentially slowing the pace of AI deployment.","category":{"slug":"hardware","name":"Hardware & Compute","url":"https://digestai.news/category/hardware"},"entities":{"companies":["Amazon","Nvidia","Business Insider","AWS","Benzinga"],"models":["GB300"],"people":["Prashant Kalyanaraman","Jensen Huang"]},"firstPublishedAt":"2026-10-23T16:54:00Z","updatedAt":"2026-10-23T16:54:00Z","sourceCount":1,"hasPrimarySource":false,"sources":[{"outlet":"americanbazaaronline.com","title":"Amazon’s $5 billion Nvidia AI servers sit idle in warehouses amid data center power shortages","url":"https://americanbazaaronline.com/2026/10/23/amazons-5-billion-nvidia-ai-servers-sit-idle-in-warehouses-amid-data-center-power-shortages-490651","publishedAt":"2026-10-23T16:54:00Z","type":"press","primary":false,"lead":true}],"sourceNotes":null,"discussions":[],"thread":{"title":"Amazon's $5B Nvidia AI Hardware Saga","url":"https://digestai.news/thread/amazon-expects-to-receive-5-billion-of-nvidia-gb300-racks-before-deployment","storyCount":2},"cite":{"text":"Digest AI, \"Amazon stores $5 billion in Nvidia servers due to power shortages\", 23 October 2026, https://digestai.news/story/amazon-stores-5-billion-in-nvidia-servers-due-to-power-shortages","publisher":"Digest AI","title":"Amazon stores $5 billion in Nvidia servers due to power shortages","datePublished":"2026-10-23T16:54:00Z","url":"https://digestai.news/story/amazon-stores-5-billion-in-nvidia-servers-due-to-power-shortages"},"generatedBy":"Written by Digest AI's editorial model from the linked sources; the sources are the record.","license":"Headlines, digests and key points are written by Digest AI and may be quoted with a link to the story page. Linked articles belong to their publishers. Terms: https://digestai.news/terms#reuse"}