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Called “colos” in the industry, the rented data centers are typically subdivided among different clients. (Nathan Howard/Getty Images)

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Amazon.com Inc.’s data center operation is much larger than commonly understood, totaling more than 900 facilities in more than 50 countries, according to documents reviewed by Bloomberg and investigative website SourceMaterial.��

Amazon Web Services is best known for sprawling data center hubs in Virginia and Oregon. But those sorts of enormous complexes, which the company owns or operates through long-term leases, don’t account for its full footprint. The cloud unit also stashes 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, according to the documents.��

Called "colos" in the industry, the rented data centers are typically 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 enormous buildings in places like Frankfurt and Tokyo, the documents show.

AWS doesn’t disclose the locations of individual data centers for security reasons and to keep operational details out of the hands of competitors. The documents shine a light on Amazon’s cloud computing operations at a time when investors are keen for insights into whether AWS has sufficient capacity to meet the enormous computing demands for artificial intelligence. They also show that AWS is one of the world’s largest renters of colo space, suggesting it has the flexibility to offer customers a range of services around the globe.��

“There are big data centers everyone talks about, but the reality is there are also these smaller cloud resources that are invisible,” said Nic Benders, chief technical strategist at New Relic, which helps businesses manage their technology infrastructure. “The cloud providers do not like to tell you where they are.”

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Balancing Ownership With Flexibility

As of early 2024, AWS was relying on more than 440 colocation data centers. The company also operated from more than 220 additional rented “edge” locations, which provide access points to Amazon’s network near major metropolitan areas, often inside telecommunications hubs operated by third parties. The company’s presence at some of these sites is designed to give customers the ability to quickly route data from their own servers or those of other cloud providers to Amazon’s own infrastructure. ��

AWS spokesperson Aisha Johnson said Amazon’s approach to data centers “balances ownership with flexibility,” and was driven by rising demand for AWS services.

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(Bloomberg)

“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,” she said in an emailed statement. “This long-term planning approach allows us to make precise decisions that align with our customers’ evolving requirements.”

AWS is the world’s largest seller of rented computing power, though that leadership position is��being tested��by rivals like Microsoft Corp. and Alphabet Inc.’s Google, which have seen their sales surge alongside the rollout of AI services. Still, Amazon’s cloud unit produced $33 billion in revenue in the third quarter and remains the company’s most-profitable division, contributing $11.4 billion in operating income in the period.

For many people, AWS' reach became clear last month when a malfunction in a key database service knocked out websites around the world, an episode that lasted about 15 hours before the company was able to fully restore service.

Tracking Amazon's Footprint

Amazon has periodically offered clues to the scale of its server farm footprint. In late 2023, then-AWS chief Adam Selipsky said Amazon had three times the number of data centers of its nearest competitor. That’s Microsoft, which at the time was touting a fleet of 300 buildings.��

Baxtel, a data center tracker, places Amazon’s footprint at 449 data centers across 49 markets. DC Byte, another provider, pegs the AWS fleet at 364 facilities in 33 countries. Researchers say tracking Amazon’s full footprint — including colos — is impossible because the agreements between AWS and its landlords are generally private.��

All told, Amazon partners with at least 180 different entities in its colocation arrangements, the documents show, ranging from colo data center operator Equinix Inc. to Japanese telecommunications giant NTT Inc. and Markley, which operates a data center in Boston.��

When an AWS customer — from Netflix Inc. to Goldman Sachs Group Inc. – rents computing power from Amazon, they do so from any of 38 regions around the world. Each region is powered by at least three data centers, further dividing Amazon’s network into what the company calls availability zones. ��

Amazon's preference, industry analysts say, is to own facilities or operate them on long-term leases, particularly in the U.S., its most important market. After 20 years of operating data centers, the company believes it can operate the facilities more efficiently than partners. AWS owns about 24 million square feet of buildings. It leases roughly the same amount, according to the company's annual report.

But Amazon also taps into space from third parties, especially when setting up shop in new areas or trying to quickly respond to changes in demand.��The company has been racing in recent years to keep up with rising use of its services, both to support businesses migrating their software to Amazon’s servers and meet��new demand to train and power AI services. In China, local laws require the company to sell its services alongside a joint venture partner.

Energy Concerns

Looking at electricity consumption – a measure of the intensity of computing use inside a facility – some of AWS’ biggest colocation data centers are in or on the outskirts of major cities, the documents show. That includes facilities in and around Frankfurt, Montreal, Mumbai, Seoul, Singapore and Tokyo.

Environmental groups and consumer advocates have warned that the rapid data center buildout by Amazon and its biggest rivals is��straining��electricity grids and��prolonging��the life of fossil-fueled power plants. Amazon has been the biggest corporate backer of renewable energy projects in recent years, one element of its aim to reach net zero carbon emissions by 2040. At the same time, its megaprojects in places like Indiana and Mississippi are helping spur the construction of new natural gas plants.��

Amazon’s Johnson said 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,” she said.��

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