Amazon’s (AMZN) data center operations are larger than commonly known and span over 900 facilities in more than 50 countries, Bloomberg News reported, citing documents reviewed by the news outlet and investigative website SourceMaterial.
Amazon Web Services, or AWS, is known for big data center hubs in Virginia and Oregon. However, these huge complexes, which the company owns or operates through long-term leases, do not account for its full footprint. AWS also has server racks in hundreds of so-called colocation facilities, renting space that as of last year provided about a fifth of the computing power at Amazon’s disposal, the report added.
Amazon did not immediately respond to a request for comment from Seeking Alpha.
Known as “colos” in the industry, the rented data centers are usually subdivided among different clients. The AWS presence in such facilities ranges from a few server racks in a dedicated room to most or all of massive buildings in places such as Frankfurt and Tokyo, according to the report.
AWS does not disclose the places of individual data centers for security reasons and to keep operational details out of the hands of rivals. The documents indicate Amazon’s cloud computing operations at a time when investors are interested to know if AWS has enough capacity to meet the large computing demands for AI. They also suggest that AWS is one of the world’s largest renters of colo space, indicating that it has the flexibility to offer customers several services worldwide, the report noted.
As of early 2024, AWS was depending on over 440 colocation data centers. The company also operated from over 220 additional rented “edge” locations, which provide access points to Amazon’s network near major metropolitan areas, often inside telecommunications facilities operated by third parties, the report added.
Amazon’s presence at some of these locations is designed to give customers the ability to swiftly route data from their own servers or those of other cloud providers to Amazon’s own infrastructure, as per the report.
AWS spokesperson Aisha Johnson said to the news outlet that Amazon’s approach to data centers “balances ownership with flexibility,” and was driven by rising demand for AWS services.
“While we own and operate the majority of our data centers, we strategically leverage third-party options when they provide additional capacity or geographic reach,” Johnson noted. “This long-term planning approach allows us to make precise decisions that align with our customers’ evolving requirements.”
AWS is the world’s largest provider of rented computing power, but its leadership position is being challenged by Microsoft (MSFT) and Alphabet’s (GOOG) (GOOGL) Google, which have seen their sales soar alongside the launch of AI services.
Data center tracker Baxtel puts Amazon’s data center numbers at 449 across 49 markets. Another provider DC Byte places AWS footprint at 364 facilities in 33 countries. Researchers note that tracking Amazon’s full footprint, including colos, is not possible because the agreements between AWS and its landlords are generally private, the report added.
Amazon collaborates with at least 180 different entities in its colocation arrangements, ranging from colo data center operator Equinix to Japanese telecommunications company NTT, and Markley, which operates a data center in Boston, the report noted.
Environmental groups and consumer advocates warn that the rapid rate of data center buildout by companies is straining electricity grids and prolonging the life of fossil-fueled power plants.
Johnson noted that other industries, not just data centers, are contributing to rising energy demand, and that the company is investing billions of dollars in carbon-free energy projects, including renewables and nuclear power. “These investments are designed to add new clean energy to the grid — helping to meet growing demand while reducing reliance on fossil fuels over time.” Johnson added.