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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 data center outage highlights the critical dependence of financial and gaming platforms on cloud infrastructure, underscoring the importance of robust disaster recovery plans. As cloud outages can disrupt trading and user activities, both providers and consumers must prioritize resilience and contingency strategies. This incident serves as a reminder of the potential widespread impact of cloud service disruptions on the tech industry and end-users.

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.