It is rare, but it happens at LEAST 2-3x a year. AWS us-east-1 has a major incident affecting multiple services (that affect most downstream aws services) multiple times a year. Usually never the same root cause.
Not very many people realize that there are some services that still run only in us-east-1.
The right analogy is to imagine if businesses that used electricity took that stance, and they basically all do. If you're a hospital or some other business where a power outage is life or death, you plan by having backup generators. But if you're the overwhelming majority of businesses, you do absolutely nothing to ensure that you have power during a power outage, and it's fine.
Catastrophic data loss or lack of disaster recovery kills companies. AWS outages do not.
And regardless, electric service all over the world goes down for minutes or hours all the time.
Texas has had statewide power outages. Spain and Portugal suffered near-nationwide power outages last year. Many US states are heavily reliant on the same single source for water. And remember the discussions on here about Europe's reliance on Russian gas?
Then you have the XKCD sketch about how most software products are reliant on at least one piece of open source software that is maintained by a single person as a hobby.
Nobody likes a single point of failure but often the costs associated with mitigating that are much greater than the risks of having that point of failure.
This is why "risk assessments" are a thing.
Imagine if the cloud supplier was actually as important as the electricity supplier.
But since you mention it, there are instances of this and provisions for getting back up and running:
* https://en.wikipedia.org/wiki/2025_Iberian_Peninsula_blackou...
The only ones that you're likely to encounter are IAM, Route53, and the billing console. The billing console outage for a few hours is hardly a problem. IAM and Route53 are statically stable and designed to be mostly stand-alone. They are working fine right now, btw.
During this outage, my infrastructure on AWS is working just fine, simply because it's outside of us-east-1.
Ironically, our observability provider went down.
What are those ?