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News2 min read·2026-10-20DisconfirmAI Editorial

Amazon's AI Servers Stuck in Warehouses Due to Power Shortages, Negative Free Cash Flow Reported

Business Insider reports that Amazon's Nvidia GB300 server racks are stored in warehouses due to insufficient data center power, with early payment processes causing free cash flow to turn negative.

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Original publication time 2026-10-20 16:10 GMT+8

According to a Business Insider report on October 19, some of the Nvidia GB300 server racks purchased by Amazon at great expense have been unable to go into use due to insufficient power supply in data centers. Meanwhile, Amazon continues to increase its investment in AI infrastructure, with capital expenditures expected to reach $220 billion in 2026, and free cash flow projected to remain negative for approximately the next two years.

The report states that internal emails from Amazon indicated the company expected to receive $5 billion worth of Nvidia GB300 server racks in August 2026, followed by approximately $3 billion worth of related equipment each month thereafter. Because some data centers did not yet have sufficient power capacity, these server racks had to be temporarily stored in warehouses. At the same time, Amazon needed to pay for the servers before they were formally deployed and operational to take ownership early, leading to earlier outflows of funds.

This phenomenon reflects systemic coordination challenges in AI infrastructure construction. In addition to power permits and cooling systems, labor required for construction may also become a bottleneck. Prasad Kalyanaraman, Vice President of Infrastructure Services at Amazon Web Services, stated in an internal meeting in September that when planning several gigawatts of data center capacity in West Texas, Amazon found a shortage of plumbers, electricians, and other skilled workers locally, necessitating funding for accommodation facilities near the sites.

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Financial data shows that according to Amazon's Q2 2026 earnings report, the company's free cash flow for the past 12 months ending in that quarter was negative $7.6 billion, compared to positive $1.818 billion in the same period of 2025. Amazon's previous financial reports attributed the decline in free cash flow primarily to increased net purchases of property and equipment, with AI investment being a significant factor. Although AWS revenue grew 37% year-over-year in Q2 and backlog orders reached $496 billion, investments in infrastructure and equipment procurement do not necessarily translate immediately into corresponding revenue.

An Amazon spokesperson responded that storing completed hardware near deployment sites helps facilitate immediate installation once power conditions are met, describing this arrangement as good business practice and denying that Amazon lacks a clear overall equipment deployment plan. However, estimates from Cleanview Research indicate that Amazon's developed data center capacity across 16 US states totals 44 gigawatts, far exceeding other tech giants, and the company internally maintains a 'Secured Power at Risk' dashboard to track risks posed by grid limitations.

Sources

  • 报道出处zhidx.com↗
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