An industrywide power crunch is changing how Amazon runs its e-commerce empire

Amazon’s huge e-commerce business is redesigning its cloud setup as power and data center capacity become increasingly constrained.

The multiyear effort, known internally as “Region Flex,” aims to reduce the concentration of Amazon’s online retail operations in a handful of large AWS regions and run systems across more locations at a smaller scale, according to internal planning documents obtained by Business Insider.

Internal plans include efforts to reduce Amazon e-commerce footprint in major AWS hubs such as Northern Virginia and Dublin, Ireland, according to the documents.

The AI boom has sparked an industrywide scramble for power and computing capacity. Amazon is racing to expand AWS data centers and says it added more capacity globally than any other company last year. Even so, CEO Andy Jassy said last month that AWS still can’t build capacity fast enough to meet demand.

“AWS power constraints”

Region Flex may not have started due to…