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AWS data center outage hits trading on Fanduel, Coinbase — recovery to take hours

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Why This Matters

The AWS outage in the US-East-1 region highlights the vulnerability of major cloud infrastructure to localized failures, impacting critical financial and gaming platforms like Coinbase and FanDuel. This incident underscores the importance for businesses to diversify their cloud dependencies and prepare for potential disruptions. As cloud services remain integral to digital operations, such outages can have widespread economic and consumer consequences.

Key Takeaways

Amazon Web Services, a leading cloud provider, started reporting operational issues on Thursday that affected trading on platforms including Coinbase and FanDuel.

"Full recovery is still expected to take several hours," AWS wrote in its latest update at 9:51 a.m. ET on Friday.

According to AWS, the outage was tied to overheating at a data center in its main US-East-1 region hosted in northern Virginia. AWS said issues were in a "single Availability Zone" in the region.

"We are actively working to bring additional cooling system capacity online, which will enable us to recover the remaining affected hardware in the impacted zone," AWS said in the 9:51 a.m. ET update.

AWS said it's working to resolve impaired EC2 instances, which provide virtual server capacity.

The AWS health dashboard first posted at 8:25 p.m. ET Thursday that it was "investigating instance impairments."

AWS had no additional comment.