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Amazon's AWS is taking NVIDIA GB300 racks before some data centers can energize them, Business Insider reported Oct. 20, with about $3B more a month projected.
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An AWS data center exterior from Amazon's newsroom. The photo is illustrative and does not show the sites named in the report.
Image: Amazon
Source · Press image from the Amazon newsroom, used for news reporting.
Amazon Web Services (AWS) expected to take delivery of roughly $5 billion of NVIDIA GB300 server racks at US facilities ahead of final deployment, while some of its sites lack the power to switch them on, Business Insider reported on Oct. 20.
AWS is reported to take about $5B of GB300 racks early, with about $3B more projected each month, according to Business Insider.
Illustration (AI-generated)
The report rests on August internal emails that Business Insider reviewed. They describe a new "Early Rack Receipt" process and project about $3 billion more in GB300 racks arriving each month "for the foreseeable future." Previously, AWS took ownership of a finished rack only when it reached a data center, according to internal documents cited by the outlet. Under the new approach it can pay for and record certain racks earlier in the supply chain.
People familiar with the effort told Business Insider that some AWS sites had floor space for more racks but not enough available electricity to energize them. Finished equipment was held at intermediary warehouses until the facilities were ready. One email said at least one AWS team had no "clear forecasted path" for getting incoming racks into data centers.
The episode shows how grid access, not chip supply, can set the pace of AI capacity. Racks that are bought and delivered but cannot be energized sit idle, and hardware that is owned but not running ties up cash before it earns cloud revenue.
The outlet ties the program to Amazon's cash position. It says Amazon expects roughly $220 billion in capital expenditures this year, and that free cash flow turned negative last quarter for the first time since 2023.
An Amazon spokesperson told Business Insider that staging hardware near deployment sites is routine, calling it a "best business practice" so that racks can be installed quickly once power is available. According to a summary of the report by Investing.com, the spokesperson disputed the suggestion that the company lacked a path to bring the sites online.
The trade-off, as the report frames it, is securing scarce GPU racks before rivals do, even if some of them wait. Voltgrid has covered Amazon's other site decisions, including its withdrawal of a four-building plan in Ashburn, Virginia, which Voltgrid reported.
The figures come from internal emails from August and are projections, not confirmed totals of racks delivered or idle. Business Insider did not publish how many racks are currently waiting, or at which sites. Amazon has not said how much of the $5 billion is staged in warehouses. Watch for the company's next quarterly report for any change in how it records inventory and for capital spending guidance.
