New York, February 3, 2026, 10:43 EST — Trading in the regular session
- Amazon shares dropped roughly 1.7% in early trading after AWS flagged extended delays for grid connections in Europe
- The remarks come just two days before Amazon is set to release its quarterly results and outlook
- Investors are closely tracking if spending on cloud capacity and AI remains aligned
Amazon shares dropped roughly 1.7% to $238.73 in Tuesday morning trading after the company told Reuters that lengthy delays for power-grid hookups are hindering plans to grow its data centers across Europe. “Connecting to the transmission network in Europe can take up to seven years,” Pamela MacDougall said. (Reuters)
The timing adds pressure to Thursday’s report. Amazon plans to release its fourth-quarter 2025 results on Feb. 5, with a conference call set for 5 p.m. ET, right after the market closes. (Amazon)
Data centers draw power well ahead of generating revenue. When grid connections delay, projects stall, move elsewhere, or become pricier to secure — tricky issues for a market already scrutinizing big tech’s AI expenses.
In mid-morning trading, the tech-focused Invesco QQQ Trust Series 1 dropped roughly 1.1%, with the State Street SPDR S&P 500 ETF Trust edging down about 0.4%.
The broader AI sector remained volatile. John Campbell, senior portfolio manager at Allspring Global Investments, noted that “expectations are really high” and warned that some AI-related stocks are “priced for perfection.” (Reuters)
Amazon’s grid problem highlights that cloud expansion isn’t just about chips and software. While AWS ramps up data-center capacity to handle growing computing and storage needs, securing reliable power delivery schedules remains crucial.
MacDougall pointed to the wait for connections—and the uncertainty about timing—as a major factor driving AWS’s decisions on where to build. She also noted that congestion can render projects unfeasible in certain locations.
The challenge extends beyond Amazon. MacDougall, vice-chair of GIGA—a coalition that counts Meta and Alphabet among its members—is pushing policymakers to update the grid infrastructure.
Investors are zeroing in on Thursday’s results. Their main concerns: AWS demand and pricing, ad revenue growth, and the pace at which Amazon is ramping up capital spending—investments in data centers, chips, and other long-lived assets—as the company pushes deeper into AI.
The downside is straightforward. Ongoing grid delays or rising power costs could slow new capacity rollout, stretching returns on investments. That’s a problem as competition from Microsoft and Alphabet in the cloud intensifies pressure on pricing and growth.
Amazon’s quarterly report and outlook drop after the close on Feb. 5. Investors will be watching closely for any updates on data-center buildout schedules, both in Europe and beyond. That guidance could shape AMZN’s trajectory through the rest of the week.
