AWS said the problem started after temperatures rose inside a single data centre, blaming a cooling system failure while explaining that engineers brought extra cooling capacity online as recovery work continued.

The outage affected services in one Availability Zone, which is a group of connected data centres designed to operate separately within an AWS region. AWS said it redirected traffic away from the affected zone for most services to reduce disruption.

Later in the day, recovery was taking longer than expected because more cooling capacity was still needed before remaining systems could safely return online. AWS further added that it did not yet have a timeline for full recovery.

Coinbase confirmed its trading platform issues were directly linked to the AWS outage. Users reported problems accessing services and delays during trading, although the company later said all markets had been restored and trading resumed normally.

Meanwhile, CME Group reported login and latency problems on its CME Direct trading platform. In a notice to users, the exchange said it had completed “essential maintenance work” and confirmed customers could log back in. The company did not explain the cause of the disruption.

Neither AWS nor CME immediately responded to requests for additional comment outside normal business hours.

The incident again exposed how heavily large financial platforms depend on cloud providers such as AWS. Even a problem in a single data centre zone can spread quickly across trading services, apps and online platforms used worldwide.

AWS has faced similar problems before. In October last year, a major outage disrupted thousands of websites and apps, including Snapchat and Reddit. That disruption became one of the largest internet outages in recent years.

A month later, CME Group experienced another major interruption after cooling systems failed at a data centre operated by CyrusOne in the Chicago area. Trading across stocks, bonds, commodities and currencies stopped for several hours.

The latest outage also points to stress on data centres as companies expand artificial intelligence systems and use more high-density servers, which generate far more heat and demand stronger cooling systems.

AWS has advised customers to spread workloads across multiple Availability Zones and regions to reduce the risk of large-scale disruptions when outages happen.

Two availability zones in the UAE lost power, while Bahrain experienced connectivity issues. AWS said recovery for both regions could take “many hours,” advising customers to rely on services in other regions while it works to restore power and connectivity.

The UAE incident occurred after sparks and fire were triggered at one of the cloud provider’s zones, prompting an immediate shutdown of power in the affected areas. 

AWS did not confirm whether the outages were related to recent Iranian retaliatory strikes on neighbouring Gulf states, including the UAE and Bahrain, in response to U.S. and Israeli attacks on Iran.

The outages coincided with other challenges across regions, as Iranian strikes in the Gulf damaged infrastructure, including Dubai airport and the Burj Al Arab hotel, prompting questions about the possible link to AWS disruptions.

Separately, Abu Dhabi Commercial Bank (ADCB) reported technical issues affecting its platforms and mobile app users on Monday. 

While the bank did not confirm a direct link to AWS, the timing points to possible ripple effects from the data centre outages.

The newspaper said the incidents resulted from errors involving Amazon’s own tool, known as Kiro. In one case in mid-December, AWS customers experienced a 13-hour interruption.

Engineers had allowed the tool to carry out certain system changes. It then decided to “delete and recreate the environment”, the report said, which led to the disruption.

AWS disputed that account.

In an emailed response to Reuters, a company spokesperson said the disruption was brief and blamed it on user error. “This brief event was the result of user error-specifically misconfigured access controls, not AI.”

The spokesperson added that the interruption was “an extremely limited event” affecting a single service in one of AWS’s two mainland China regions. It did not impact compute, storage, database, AI technologies, or any other AWS services, the company said.

The December incidents follow an outage in October that disrupted Amazon’s cloud operations globally. That earlier failure affected Amazon’s own services and several high-profile apps, including Reddit, Roblox and Snapchat.

AWS is the cloud division of Amazon and supports a large share of the internet’s infrastructure. Because of that reach, even short interruptions can affect millions of users and businesses.

Both Amazon Web Services outages in December have drawn attention because they involved automation tools that can act with limited human input.

Cloud providers have been expanding the use of such systems to manage complex infrastructure. At the same time, customers expect stability and clear accountability when problems occur.

Competitors including Microsoft Azure and Google Cloud are also developing automated tools to manage their platforms.

AWS maintains that the December disruption resulted from misconfigured access controls, not from the coding tool acting on its own.

With many companies looking for stronger safeguards after recent internet disruptions exposed weaknesses in single-cloud setups, the launch comes just in time.

Both firms said the service allows customers to build secure, high-capacity connections between Amazon Web Services (AWS) and Google Cloud in minutes. Before now, many organisations waited weeks to complete the same process due to the technical and approval delays tied to cross-cloud circuits.

Just over a month ago, AWS suffered a major outage on October 20 that spread through its US-East-1 region. A faulty update to DynamoDB’s API triggered DNS failures across the zone, breaking more than 113 AWS services and knocking out platforms such as Snapchat, Reddit, Coinbase and Alexa. 

Analysts estimate the disruption costs U.S. companies between $500 million and $650 million. For many firms, the incident revealed the risk of placing all operations on a single cloud provider.

In response, interest in multicloud resilience has grown. The new service blends AWS’ Interconnect–multicloud with Google Cloud’s Cross-Cloud Interconnect. The aim is to remove friction for organisations that want systems running across several clouds without slow setup cycles or unpredictable routing.

AWS vice president of network services, Robert Kennedy, said the development points to a major shift in how cloud platforms interact. “This collaboration between AWS and Google Cloud represents a fundamental shift in multicloud connectivity.”

Google Cloud also noted the benefit for companies moving large volumes of data between providers. Its vice president and general manager of cloud networking, Rob Enns, stated that the joint framework is meant to simplify workload mobility. Salesforce is one of the early adopters of the new model, according to Google.

Cloud competition is highly intense. AWS continues to top the global market with roughly 29–30% share, while Microsoft Azure holds about 20% and Google Cloud has climbed toward 13%. 

In the third quarter alone, the cloud infrastructure market was valued at around $107 billion, controlled largely by these three companies.

Heavy investment in infrastructure is expected to continue. Increasing demand for artificial intelligence is pushing cloud providers to expand data centres, improve capacity and strengthen network routes. 

AWS recently committed to a multi-year $38 billion partnership with OpenAI, offering access to large clusters of Nvidia GPUs. Google and Microsoft are making similar bets, as AI workloads remain one of the biggest drivers of cloud growth.

In working together on a cross-cloud standard, Amazon and Google have taken an unusual step. The two companies are long-standing competitors, but the new partnership shows a shared interest in reducing latency and making multicloud operations easier for enterprise customers. 

For large users like Salesforce, the ability to deploy cross-cloud links in minutes rather than weeks may prove decisive as businesses seek more resilient infrastructure after recent outages.

The disruption, which originated from AWS’s US-EAST-1 data centre in Ashburn, Virginia, lasted several hours and left millions of users unable to access services such as Snapchat, Reddit, Venmo, Zoom, and even Amazon’s own Prime Video and Alexa. 

According to outage tracking site Downdetector, more than four million users globally reported problems during the incident.

By 3:01 p.m. PT (10:00 p.m. GMT), Amazon confirmed that “all AWS services returned to normal operations. Some services such as AWS Config, Redshift, and Connect continue to have a backlog of messages that they will finish processing over the next few hours.”

Root Cause: Network Health Monitor Failure

AWS identified the source of the failure as a malfunction in a subsystem that monitors the health of its network load balancers, a key component responsible for distributing traffic across multiple servers. 

The fault within its Elastic Compute Cloud (EC2) network also triggered a Domain Name System (DNS) error that prevented apps from locating DynamoDB, one of AWS’s most critical database services.

The outage, Amazon confirmed, “originated from within the EC2 internal network,” once again placing focus on the US-EAST-1 cluster, the same region linked to similar breakdowns in 2020 and 2021. Despite repeated failures in this location, the company has yet to explain why the data centre is still a recurring weak point.

Global Impact: From Banks to Gaming Platforms

The outage exposed the scale of global dependence on AWS. Major banks, telecom firms, and government agencies across Europe and North America reported downtime. In Britain, Lloyds Bank, Bank of Scotland, Vodafone, BT, and even the UK tax and customs authority (HMRC) experienced service interruptions.

For consumers, the impact was immediate and across-the-board. Social platforms like Snapchat and Reddit went dark, while fintech platforms such as Venmo, Robinhood, and Coinbase froze transactions. 

Gaming networks, including Fortnite, Roblox, Clash Royale, and Clash of Clans, were also affected. Lyft users in the United States were unable to book rides, and airline check-in systems at LaGuardia Airport in New York temporarily failed.

Artificial intelligence startup Perplexity, cryptocurrency exchange Coinbase, and trading app Robinhood were among those confirming that AWS was at the root of their service disruptions. Even Signal, the encrypted messaging platform, was hit. “This outage once again highlights the dependency we have on relatively fragile infrastructures,” said Jake Moore, global cybersecurity advisor at European security firm ESET.

Experts Warn of Fragile Cloud Dependency

The scale of the outage has reignited talks about the world’s overreliance on a handful of cloud providers, Amazon, Microsoft Azure, and Google Cloud, which collectively power a vast portion of global digital infrastructure.

“This was the third major AWS outage in five years linked to the same region,” said Ken Birman, professor of Computer Science at Cornell University. “When people cut costs and cut corners to try to get an application up, and then forget that they skipped that last step and didn’t really protect against an outage, those companies are the ones who really ought to be scrutinised later.”

Ryan Griffin, U.S. cyber practice leader at McGill and Partners, added that “for major businesses, hours of cloud downtime translate to millions in lost productivity and revenue.”

Recurring Weakness in US-EAST-1

The Ashburn-based US-EAST-1 cluster is AWS’s oldest and largest region, usually set as the default for many of its services. This makes it a single point of failure, and experts argue that the region’s recurring issues demonstrate the risks of centralised cloud design.

Nishanth Sastry, director of Research at the University of Surrey’s Department of Computer Science, said the incident was predictable. “The main reason for this issue is that all these big companies have relied on just one service,” he noted.

Market Reaction and Next Steps

Despite the global disruption, Wall Street remained largely indifferent. Amazon’s shares closed 1.6% higher at $216.48 on Monday. The company has promised to release a detailed post-event summary but has not clarified whether structural changes will be made to prevent a repeat of the incident.

The Amazon Web Services (AWS) global outage, the largest since last year’s CrowdStrike malfunction that crippled hospitals, banks, and airports, tells us that the cloud’s convenience comes with fragility. 

The outage, which originated from AWS’s US-EAST-1 region, began in the early hours of Monday and quickly spread beyond the United States, affecting Europe, Asia, and Africa. 

According to AWS’s own status dashboard, multiple services are currently “impacted” due to “increased error rates and latencies,” with engineers “actively engaged and working to both mitigate the issue and understand root cause.”

For users, the impact has been immediate and widespread. Alexa devices have gone silent, unable to respond to voice commands or execute daily routines like alarms and reminders. 

Developers and businesses using AWS’s cloud network, from Airtable to Perplexity AI and the McDonald’s app, have also been hit. Even high-traffic entertainment platforms like Fortnite, Roblox, and Rainbow Six Siege are offline.

Downdetector, a platform that tracks service disruptions, has logged over 2,000 incident reports in the U.S. alone since the outage began. On Reddit and X (formerly Twitter), frustrated users across time zones have shared screenshots of failed connections and frozen dashboards.

“Perplexity is down right now,” confirmed Aravind Srinivas, CEO of Perplexity, in a post on X. “The root cause is an AWS issue. We’re working on resolving it.”

Amazon, in its latest public update at 3:51 a.m. ET, noted that it would provide further information every 45 minutes “or sooner if we have additional information to share.” However, at the time of writing, there is still no estimated timeline for full restoration.

This isn’t the first time AWS’s US-EAST-1 region has been the source of widespread disruption. Similar outages in December 2021, November 2020, and June 2023 took down high-profile platforms including Netflix, Disney+, Slack, Zoom, and Twitch. 

Each incident revealed an issue across the tech industry, that a large portion of the global internet depends heavily on a single cloud provider’s regional infrastructure.

The current outage appears to have hit both consumer-facing apps and backend systems, including AWS’s own Support Center and Support API, which organisations rely on for case creation and troubleshooting.

While AWS has reiterated that engineers are investigating the problem, the lack of transparency about the specific cause of the outage is driving industry-wide anxiety. Many are now revisiting familiar cases of how much centralisation is too much when the internet’s backbone depends on just a handful of companies.

For now, millions of users are in a holding pattern, waiting, refreshing, and hoping their devices come back online soon.

Order cancellations failed. And yet again, the cryptocurrency space was forced to reckon with the risks of depending too heavily on a single cloud provider.

At around 9:15am (8:15am GMT) on Tuesday, AWS reported a connectivity issue that affected at least a dozen of its services. The incident, which lasted for less than 40 minutes, impacted centralised exchanges that rely on AWS to power their operations.

Binance was the first to sound the alarm. For 23 minutes, users couldn’t withdraw their assets. The platform posted a brief message on X (formerly Twitter): “To keep safe, we’ve temporarily suspended withdrawals.” Barely ten minutes later, they were back online. But the damage had already begun.

KuCoin followed. “Due to a large-scale network outage with AWS services, our platform is currently experiencing temporary disruptions,” the exchange announced on X. Their spokesperson confirmed the outage hit Tokyo’s data centre directly. 

“Some services have already been restored, and our team is working closely with AWS to recover full functionality as quickly as possible. No user assets or data have been affected.”

MEXC also felt the heat. Users were left staring at abnormal candlestick charts, failed order cancellations and delays in asset transfers. “We want to assure you that your assets on MEXC remain fully secure. For any losses incurred as a result of this platform-related issue, we will prepare a compensation plan to appropriately reimburse affected users,” the exchange stated publicly.

Coinstore, Gate.io, DeBank, Rabby Wallet, Weex—one by one, platforms reported similar issues. By mid-morning, more than eight exchanges had acknowledged problems linked to the AWS outage.

For anyone watching closely, this wasn’t just a technical hiccup. It was a warning siren.

AWS, known for providing fast, scalable infrastructure, has become the spine of the crypto economy. From Binance to Coinbase, Crypto.com to Kraken, most big-name exchanges run on its cloud. When that spine snaps—even momentarily—the entire ecosystem wobbles.

“The issue has been resolved and the service is operating normally,” said an AWS spokesperson after full service was restored. But not everyone is ready to move on.

Gracy Chen, CEO of Bitget exchange, said: “AWS data centre issues impacted several CEXs — no need to panic. It’s a solid reminder: Maybe it’s time to explore decentralised cloud services.”

It’s not the first time this conversation has come up. Centralised infrastructure in crypto—ironically—is a contradiction that continues to haunt the industry. It’s efficient. It’s scalable. But it’s also brittle. One crack in the system, and everything unravels.

Edmund Chua, head of mETH Protocol, didn’t hold back: “AWS down and 90% of crypto is down. Decentralisation is a meme.”

There are already decentralised alternatives out there: Filecoin for storage, Akash Network for computing, Render Network for graphics processing. But adoption has been slow, and trust in cloud giants like AWS remains the norm—until moments like this remind everyone why that might be dangerous.

In the end, yes—assets were safe. Services came back online. But as I watched events in real time, it became clear that fixing a technical error wasn’t the only issue. The need to confront a deeper problem is a must.

Crypto was built on the idea of freedom from central control. Yet here we are, watching entire exchanges freeze because one cloud provider faltered.