Catenaa, Saturday, October 24, 2026- Amazon CEO Andy Jassy said Friday that AWS cloud computing capacity is largely sold out through 2027, Reuters reported.
Reuters said Amazon is struggling to keep pace with insatiable demand from AI labs and enterprises.
Earlier this year, Amazon said it would spend about $220 billion on capital expenditure in 2026.
“2027 is largely sold out. We always leave a certain amount for on demand and our inference service bedrock, or EC2, but largely sold out all the big chunks. A good chunk of 2028 is sold out,” Jassy said Reuters reported.
Reuters reported that EC2 provides cloud servers for running applications, while Bedrock gives customers access to AI models to build generative AI applications.
According to Reuters, Jassy said the company “could invest a lot more and it wouldn’t be a bad use of capital,” considering cloud-computing capacity for 2026 is already sold out.
In Q2, AWS generated about $42 billion in revenue, up 36% year over year, and $16 billion in operating income.
At the same time, though, Amazon’s cash capital expenditures totaled just over $53 billion. The company says that investment “primarily relates to AWS and generative AI.”
Amazon’s infrastructure expansion requires substantial upfront investment. Companywide cash capital spending exceeded $53 billion during the second quarter, compared with AWS revenue of $42.2 billion.
However, the two figures cover different business activities, and the spending includes long-lived assets expected to generate revenue over several years.
Amazon lifted its 2026 capex forecast by $20 billion to about $220 billion.
Amazon executives have pointed to existing customer agreements as evidence supporting the company’s investment plans. During its second-quarter earnings call, Jassy said AWS’s contracted revenue backlog had reached $496 billion, more than doubling from a year earlier.
Despite its substantial infrastructure investment, Amazon expects demand for cloud computing to exceed available capacity in 2026 and much of 2027. Jassy also said customers had already committed to significant computing capacity for 2028, underscoring the scale of future demand.
