A sudden temperature surge inside an Amazon Web Services data centre in Northern Virginia triggered a chain of service disruptions across major online platforms, briefly affecting crypto trading, gaming services, and cloud-dependent applications.
The issue was traced to a single Availability Zone in the US-EAST-1 region, where overheating impacted core infrastructure and slowed down key systems.
Amazon Web Services confirmed that elevated temperatures in one of its data centres led to impaired operations within Availability Zone use1-az4.
The incident disrupted EC2 instances and EBS volumes, which underpin a wide range of cloud services used by global platforms.
In its status update, AWS said:
“We continue to investigate instance impairments to a single Availability Zone (use1-az4) in the US-EAST-1 Region.
We have experienced an increase in temperatures within a single data center, which in some cases has caused impairments for instances in the Availability Zone.”
The company added that the thermal issue also affected dependent services and that engineers were working to restore cooling capacity and stabilise affected hardware in a controlled manner.
Source: AWS
The disruption quickly spilled over to cryptocurrency exchange Coinbase, where users experienced failed transactions and slower platform performance on both web and mobile interfaces.
Coinbase confirmed that the disruption stemmed from AWS infrastructure issues and said customer funds were not affected.
The exchange reported early on 7 May at around 18:06 PDT (8 May, 09:06 GMT+8) that it was investigating degraded performance and later identified the root cause as the AWS outage.
The company stated:
“This issue is related to a broader AWS outage. We're monitoring closely and working to restore full service.
We'll continue to update. Your funds are safe,”
At the same time, Coinbase noted temporary delays affecting specific functions, including Solana transfers and ALEO transactions, before expanding the impact across broader trading services.
The platform moved markets into a “Cancel Only” mode, allowing users to withdraw existing orders while systems were stabilised ahead of a phased restoration of trading.
AWS said it had begun seeing “early signs of recovery” as additional cooling systems were brought online.
Engineers started reactivating impacted server racks gradually to avoid further instability.
The company said recovery work remained ongoing:
“We continue to make progress in resolving the impaired EC2 instances in the affected Availability Zone (use1-az4) in the US-EAST-1 Region, and are working towards full recovery.
We are actively working to bring additional cooling system capacity online, which will enable us to recover the remaining affected racks in a controlled and safe manner.”
The phased recovery process focused on restoring temperature balance across infrastructure before fully re-enabling services.
Coinbase’s temporary trading restrictions reflected the wider instability in backend cloud services.
While users could not execute new trades during the affected window, the “Cancel Only” mode ensured that open orders could still be managed safely.
The exchange indicated that full trading functionality would return in stages once AWS confirmed stability in the affected availability zone.
The disruption highlighted the concentration risk faced by major digital platforms that rely heavily on a small number of cloud providers.
With AWS hosting critical workloads for exchanges, gaming platforms like FanDuel, and other high-traffic services, even isolated infrastructure issues can quickly ripple across global systems.
While services were gradually restored, the incident reinforced how closely platform uptime is tied to underlying cloud infrastructure health, particularly within heavily used regions such as US-EAST-1.
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