Business Insider reported that Amazon.com Inc. (NASDAQ:AMZN) is buying billions in Nvidia Corp. (NASDAQ:NVDA) AI hardware, but some new server racks are sitting in warehouses because its data centers lack the electricity to run them. The report cites internal Amazon emails, but the content provided is cut off before it details what the company expected.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
NVDAAmazonsemiconductorsdata centerselectricity
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/20/2026 | 216.48 |
| Change that session | -0.28% |
AMZN
• NeutralAmazon
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/20/2026 | 262.76 |
| Change that session | +0.12% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Amazon stockpiles Nvidia AI hardware ahead of power availability -Business Insider
Amazon has agreed to buy billions of dollars of Nvidia GPUs before its data centers have enough power to run them, according to internal August emails obtained by Business Insider. Under a new Early Rack Receipt program, the company is taking delivery of about $5 billion in Nvidia GB300 server racks at U.S. facilities, with plans to accept another $3 billion each month. Because several AWS sites lack the utility capacity to energize servers, some hardware sits idle in warehouses as dark GPUs, tying up capital before it generates cloud revenue. The move comes as Amazon projects roughly $220 billion in capex this year and posted negative free cash flow last quarter for the first time since 2023. An Amazon spokesperson called the staging a best business practice for rapid installation once power arrives and disputed reports that the company lacked a clear path to bring the sites online.
- AI bottlenecks 'keep shifting': Nvidia CEO Jensen Huang explains
Nvidia CEO Jensen Huang, speaking with Deirdre Bosa at Nvidia GTC Berlin, said AI bottlenecks keep shifting, moving from wafers to CoWoS, HBM memory, silicon photonics and connectors, and now to power. He said power is often available, but land, power shells, generator delivery, grid connections and construction limits create the problem, and permitting rules differ across countries and states. Huang argued Nvidia is resilient because it supports every AI model, cloud provider and computer company across every country, so it can ship chips wherever a bottleneck is resolved. He expected these physical bottlenecks to persist for a couple more years as AI factories ramp up.
- Nvidia reveals plans for 'an AI factory in a shipping container' to build factories in weeks, not months
At its GTC event in Berlin, Nvidia (NVDA) unveiled the DSX POD, a reference design for an AI data center packed into a box about the size of a standard shipping container. Vera Rubin-powered DSX PODs will arrive on site ready to plug into power, cooling and networking, reducing deployment time from six months to 14 days. Nvidia says the units won't replace traditional data centers but let customers start running AI applications before brick-and-mortar facilities are ready. The DSX POD supports liquid cooling and, using dry-cooler designs, can save up to 54 million liters of water per day versus a standard data center. Nvidia is working with Anduril, Armada, Bull, Crusoe, Dell Technologies (DELL), Foxconn and others to begin delivery in early 2027, while the article notes that power supply is another bottleneck for data center builders.
- How do you know what's real?: US utilities are making AI data centers prove they exist before handing over power connections as 50% of planned buildouts are currently being delayed, stalled, or canceled
US utilities are making AI data center developers prove projects are real, using higher rates, collateral, longer contracts and study fees to weed out “phantom” demand, since grid costs are shared. Developers have requested 1,066GW of connections, but Wood Mackenzie expects utilities to serve only about 28%. Exelon’s high-probability data center load fell from 18GW to about 11GW after it required binding agreements, yet its $41 billion capital plan is unchanged. PJM’s market monitor said 4,017MW of forecast data center load had been canceled or delayed, and households may bear the costs. Average minimum contract lengths for large customers have risen to about 10.8 years from 4.6 before 2024.
- Tech companies need more data centers. So why are nearly half of all planned projects delayed or canceled?
Global hyperscale spending is projected at about $700 billion, yet many U.S. data center projects are running late: according to the Sandstone Group, nearly half of planned projects are behind schedule, while industry research puts 30% to 50% of the 16 GW of U.S. capacity due online at risk of severe delays or cancellation. Allianz Research cites lengthy permitting, a shortage of roughly 439,000 skilled construction workers, and electrical equipment deficits as key reasons. In markets such as Northern Virginia, Phoenix and Dallas, waits to clear grid interconnection queues routinely run four to seven years. Oracle and OpenAI also scrapped plans to expand the 1,000-acre Crusoe Energy-developed AI campus in Abilene, Texas, from 1.2 GW to 2.0 GW, after negotiations stalled over financing and utility timelines.
- Tech companies need more data centers . So why are nearly half of all planned projects delayed or canceled ?
Global hyperscale spending on AI infrastructure is projected at about $700 billion, yet the article says 30% to 50% of the 16 GW of U.S. data center capacity scheduled to come online faces severe delays or cancellation. Causes include lengthy permitting, a shortage of roughly 439,000 skilled construction workers, electrical equipment deficits, and grid interconnection queues that stretch four to seven years in markets like Northern Virginia, Phoenix and Dallas. Sandstone Group reports that nearly half of planned U.S. data centers are behind schedule. As an example, Oracle and OpenAI shelved plans to expand the Abilene, Texas campus developed by Crusoe Energy from 1.2 GW to 2.0 GW after prolonged negotiations over financing and utility timelines stalled. A typical AI data center can consume as much electricity as 100,000 households, and the largest campuses under construction will use 20 times that.
Related markets
Latest news
- Why Super Micro Computer Stock Popped Today
Super Micro Computer (SMCI) shares rose 9.19% on Wednesday after the server maker announced preliminary results. It expects fiscal 2027 first-quarter revenue of $18.5 billion to $19.5 billion, well above its prior guidance of $14.5 billion to $15.5 billion and Wall Street's roughly $15 billion estimate, driven by rising AI demand. Gross margin is projected at 12% to 12.5%, up from 10.4% to 10.8%, due to a more favorable customer and product mix, and fellow server makers Dell and Hewlett Packard Enterprise also rose. The earnings call is scheduled for Nov. 3 at 5:00 p.m. ET.
- BlackRock's Rick Rieder sees 'historic' opportunity in high-quality bonds
BlackRock's Rick Rieder told CNBC that investors have a 'historic' chance to earn attractive yields in high-quality credit despite bond market volatility. He said a diversified portfolio could now yield over 7% with under three years of duration and an average credit quality of A-, a level that usually appears only during economic or default problems, which he does not see now. Rieder favors investment-grade corporates, including hyperscalers like Alphabet, Amazon, Meta and Oracle, which have low leverage and strong cash flows, though they have issued about $228.4 billion in bonds this year. He advises patience since rates could still rise, and caution outside investment grade, especially AI data center debt not backed by hyperscalers. He expects the Fed to hike in December, though he disagrees, and flags rising government debt, with the US fiscal 2026 deficit at $2 trillion.
- Almadex Expands Claim Block at New Hope, Provides Exploration Update
Almadex Minerals expanded its claim block at the New Hope copper-gold porphyry project in Arizona, covering a broad area of high chargeability east of its two-hole drilling campaign. Mapping and geophysics suggest the drilled holes sit on the western edge of a 2.5 km x 0.75 km zone of phyllic and remnant lithocap alteration, and IP work extended the anomaly 1.95 km east. The second hole returned 6.00 metres at 0.15% copper and 156 ppm molybdenum, including 2.00 metres at 0.34% copper. The company is designing a potential phase II drilling program. At the King target in Colorado, one hole reached 980 metres, and samples are awaiting assay.
- Mustang Completes IP Geophysical Surveys and Announces Q4 Drilling Plans for the Confusion Hills Project, Nevada, USA
Mustang Minerals has completed IP geophysical surveys at its Confusion Hills and Pilot projects in Nevada, helping better define drill targets. Pilot still needs further work before drilling, while the company has enough information to plan a single-hole exploratory diamond drilling program at Confusion Hills, where preparatory work has begun. Confusion Hills covers a 1.6 km x 0.5 km high sulphidation lithocap, where grab samples reached up to 7.1 g/t gold, and 6 samples returned over 0.1 g/t gold, averaging 1.6 g/t. Mustang will update when drilling begins. The Pilot copper-gold prospect has an approved drill permit, and the company also holds the Red Ring project.
- Warren Buffett's Latest Warning Is Sending Shockwaves Through Wall Street. Here's What History Says Could Happen Next.
Warren Buffett's Berkshire Hathaway portfolio has returned an average compound annual 19.7% over six decades, versus 10.5% for the S&P 500, and he has recently warned about a 'gambling mood' in the stock market and high equity prices. The S&P 500's CAPE ratio stands at 40.7, far above its average of 17.4 and exceeded only during the dot-com bubble, when it peaked at 44 in late 1999. In his final meeting as Berkshire CEO in May 2025, Buffett warned that the US fiscal deficit was unsustainable; the article argues the situation has since worsened, with Brent crude up 80% since the start of the year and September inflation at 3.7%, well above the Fed's 2% target. Higher inflation erodes the value of cash and keeps interest rates high, which could be particularly harmful for the AI industry. The article recalls Buffett's 2021 advice to 'never bet against America' and suggests that time in the market usually beats trying to time it.
- AST SpaceMobile Hit a 52-Week Low Days After SpaceX Spent $8 Billion on Spectrum. That's Not a Coincidence.
AST SpaceMobile hit a 52-week low of $39.02 on Oct. 20, 12 days after SpaceX agreed to buy Grain Management's nationwide 800 MHz low-band spectrum for $8 billion. The article says the deal could let Starlink, combined with over 10,000 active satellites, become a standalone wireless carrier, threatening AT&T and Verizon's plans with AST. However, the author argues the sell-off is an overreaction, since carriers may need to invest more in AST's satellites to compete, and SpaceX's move may push more carriers toward AST. AST has launched 13 BlueBird satellites and needs at least 45 for stable service, and the decline is attributed mainly to a valuation of 74 times this year's sales. Analysts expect revenue to rise from $168 million in 2026 to $1.73 billion in 2028.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.