What instance type is this and what region is this? This error occurs when the region you chose to launch the instance does not have enough of that instance type. You can retry this maybe 15 minutes to 30 minutes later or choose another instance type to launch. This problem comes by where most people think that cloud has infinite resources, but in actual fact, there is since the backend are still physical servers virtualized to provide the resources :)
If AWS doesn't currently have enough available On-Demand capacity to complete your request, you'll receive the following InsufficientInstanceCapacity error.
If you receive this error, do the following:
- For troubleshooting steps, see Insufficient instance capacity.
- If the preceding troubleshooting steps don't resolve the problem, then you can move the instance to another VPC or to another subnet and Availability Zone.
To avoid insufficient capacity errors on critical machines, consider using On-Demand Capacity Reservations. To use an On-Demand Capacity Reservation, do the following:
- Create the Capacity Reservation in an Availability Zone.
- Launch critical instances into your Capacity Reservation. You can view real-time Capacity Reservation usage, and launch instances into it as needed.
You can find above information on this reference link : https://aws.amazon.com/premiumsupport/knowledge-center/ec2-insufficient-capacity-errors/
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