The power grid just became the AI bottleneck. The Information reports Mississippi's Entergy told Amazon it would start kicking Amazon's data centers off the grid at peak times, a previously unreported warning that prompted AWS to change how those sites switch to backup power.

Amazon's answer is Project Falcon. Now the utility can switch the sites to backup power on its own, without contacting AWS. Falcon was built for Mississippi and may roll out elsewhere in the U.S. As Synergetic CEO Mike Sloan put it: "[Data centers] have to accept some curtailment, which means then the data center has to have a toolbox that can handle that risk."