Amazon: Nvidia Chips Sitting in Warehouses Without Power

By Indie Kings | October 24, 2026

Updated October 24, 2026: Amazon is buying billions in Nvidia AI chips faster than it can plug them in. A Business Insider report shows server racks sitting in warehouses because Amazon's data centers lack electricity.

Image: Data center server racks via Wikimedia Commons.

Chips sitting in warehouses

Amazon is buying billions in Nvidia AI server systems, but some racks are sitting in warehouses because Amazon's data centers don't have enough electricity to run them. Internal emails show Amazon expected to receive $5 billion worth of Nvidia AI server systems in August, followed by another $3 billion a month. The company did not specify how long those purchases would continue.

The numbers

Item	Value / Status
Expected receipt in August 2026	$5 billion in Nvidia AI server systems
Monthly purchase rate (reported)	$3 billion per month
AWS revenue Q2	$42.2 billion (+37% year over year)
AWS backlog	$496 billion
AI server payback time (per Amazon CFO)	Under three years
Morgan Stanley power shortfall warning	32 GW through 2028

Some sites have space for the racks but insufficient power. One supply-chain team did not know when the Nvidia servers it was receiving would actually be installed and ready to use.

Early Rack Receipt program

Amazon created an "Early Rack Receipt" program to secure Nvidia chips amid fierce competition, even before its data centers are ready. Previously, Amazon waited until the equipment arrived at its data centers before taking ownership. Now it pays earlier, even if the servers must sit in warehouses.

Bubble concerns

AI skeptic Ed Zitron estimated in September that $200 billion to $300 billion worth of AI chips could be sitting in warehouses or unpowered data centers. Business Insider's findings provide concrete evidence. Polymarket traders now see a 10% chance of an AI bubble burst by December 31, up from 6% days earlier. The odds reach about 22% by June 30, 2027. The contract requires three specified industry stress events within 90 days for a "Yes"; unpowered chips alone do not qualify.

FAQ

How much is Amazon buying from Nvidia?
$5 billion in systems expected in August, followed by another $3 billion a month.

Why are chips sitting in warehouses?
Amazon's data centers lack the electricity to run them. Some sites have space but not enough power.

What is the Early Rack Receipt program?
Amazon pays for chips earlier than before, even before the data centers are ready, to secure supply.

What does Amazon say about demand?
AWS revenue rose 37% to $42.2 billion in Q2, backlog is $496 billion, and Amazon's CFO said AI servers achieve payback in under three years.

Is this evidence of an AI bubble?
Business Insider's report provides concrete evidence of unpowered chips, but the Polymarket contract requires three stress events within 90 days for a bubble claim.

How big is the power shortfall?
Morgan Stanley warned of a 32-gigawatt power shortfall facing U.S. data centers through 2028.

Bottom Line

Amazon is buying faster than it can power up. The $5 billion in August chips and $3 billion monthly rate show intense AI demand, but warehouses filled with unpowered server racks reveal the physical bottleneck: electricity. Whether that's a temporary supply-chain squeeze or a sign of overspending is the open question.

Sources

Benzinga: Amazon's Nvidia Chips Are Sitting in Warehouses Without Power as AI Spending Soars, Business Insider Reports, accessed 24 October 2026
Business Insider: Amazon Nvidia AI GPU data center power shortages, 2026
Morgan Stanley: Data center power shortfall report, 2026