AWS experienced a data center outage in its US-East-1 region in northern Virginia due to overheating, affecting trading platforms FanDuel and Coinbase, with recovery expected to take several hours.
# AWS data center outage hits trading on FanDuel, Coinbase — recovery to take hours
Source: [https://www.cnbc.com/2026/05/08/aws-outage-data-center-fanduel-coinbase.html](https://www.cnbc.com/2026/05/08/aws-outage-data-center-fanduel-coinbase.html)
Mateusz Slodkowski \| SOPA Images \| Lightrocket \| Getty Images
[Amazon](https://www.cnbc.com/quotes/AMZN/)Web Services, a leading cloud provider, started reporting operational issues on Thursday that affected trading on platforms including[Coinbase](https://www.cnbc.com/quotes/COIN/)and FanDuel\.
"Full recovery is still expected to take several hours," AWS wrote in its[latest update](https://health.aws.amazon.com/health/status)at 3:29 p\.m\. ET on Friday, adding that "efforts are slower than we had previously anticipated\."
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 its 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\.
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At 9:00 p\.m\. ET Thursday, sports\-betting app FanDuel posted on X that its team was "aware and investigating the[current technical difficulties](https://x.com/FanDuel_Support/status/2052554175519605144)prohibiting users from accessing our platform\."
The company posted an update two hours later that the issue was tied to a[broader AWS outage](https://x.com/FanDuel_Support/status/2052585209300648353), with gamblers complaining about lost bets from being unable to cash out on the platform\.
Cryptocurrency trading platform Coinbase also[posted on X Friday](https://x.com/CoinbaseSupport/status/2052686304106746066)that failures in multiple AWS zones "caused an extended outage of core trading services\." The platform wrote in its post that the primary issue has been fully resolved\.
AWS accounts for about a third of the market for cloud infrastructure technology, providing services for millions of companies\.
Coinbase's 10-hour outage postmortem reveals they run global trading from a single region without automated failover, raising concerns about their infrastructure reliability.
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