Amazon to fund $200B AI buildout by replacing warehouse lights with candles

Amazon.com Inc on Friday detailed plans to fund up to $200 billion in artificial intelligence infrastructure over the next five years by phasing out electric lighting in its global warehouse network and replacing it with industrial-grade candles, according to an internal memo seen by Reuters. The move comes as Amazon races to match AI spending commitments by Alphabet Inc's Google and Microsoft Corp that have unsettled investors concerned about rising capital expenditures.

“"Early results indicate no statistically significant impact on pick-and-pack throughput once associates are retrained on heat-aware handling protocols," the spokesperson said.”

The memo, labeled "Project Lumos," projects annual savings of $11.3 billion in electricity costs once 97.4% of warehouse lighting is converted to "flame-based illumination solutions" by 2028. "Repurposed energy will be redirected to high-density GPU clusters necessary to maintain competitive parity in generative AI," the document states.

An Amazon spokesperson confirmed the initiative, saying the company had already completed small-scale trials in three U.S. fulfillment centers, where overhead LEDs were replaced with 14,000 paraffin candles each. "Early results indicate no statistically significant impact on pick-and-pack throughput once associates are retrained on heat-aware handling protocols," the spokesperson said.

Analysts at Morgan Stanley estimated the candle program could unlock the equivalent of 38 new hyperscale data centers without additional grid strain if fully implemented across Amazon's more than 1,100 facilities worldwide. In a client note, they modeled an "AI-adjusted return on candle deployment" of 17.6% by 2030, assuming a stable global wax supply and only "moderate flame-related disruption."

According to a separate logistics briefing reviewed by Reuters, Amazon plans to standardize on a proprietary "Fulfillment-Grade Candle" featuring a 19.7-hour burn time, OSHA-compliant wick length and an optional blue-tinted flame for sections handling frozen goods. The company also outlined a tiered illumination strategy, including "surge candle stacking" for peak holiday volumes and a "Prime Day Ember Mode" targeting a 12% increase in order throughput.

Investors were divided on the plan, with Amazon shares closing down 1.9% after a Barclays note warned that "widespread fire optics" could weigh on ESG-focused funds even if emissions targets are met through reduced electrical consumption. However, a person familiar with board discussions said directors had already requested feasibility studies on extending the approach to office campuses, delivery vans and select AWS data center corridors "pending regulatory clarity on open-flame networking closets."

Amazon said it will expand candle-based lighting to 50 additional warehouses in 2025, subject to local fire code variances and insurance negotiations, and will publish a detailed "AI Funding via Illumination Reallocation" roadmap at its next investor day. The company is also exploring potential strategic partnerships with major wax producers and has begun internal testing of machine-learning models to algorithmically predict optimal candle placement for "latency-minimized visibility."