Amazon cloud capacity sold out through 2027, CEO Jassy says

Amazon Web Services (AWS) CEO Andy Jassy announced on Friday that the company's cloud capacity is nearly fully booked through 2027, with significant commitments extending into 2028. This surge in demand is primarily driven by the growing need for artificial intelligence infrastructure. Speaking during a video podcast with Ben Horowitz and Erik Torenberg of Andreessen Horowitz, Jassy revealed that AWS is facing challenges in rapidly expanding its infrastructure to meet this heightened demand.

The pressure on available capacity is especially intense due to the increasing adoption of AI by developers and enterprise customers who require resources to train, deploy, and operate AI models. Despite Amazon's plans to invest around $220 billion in capital expenditure during 2026, Jassy emphasized that the additional spending might be necessary given the scale of demand, as AWS's available cloud capacity for 2026 has already been fully committed.

Most large capacity allocations for 2027 have been reserved, and a considerable portion of 2028 capacity is also accounted for. However, AWS retains some computing resources for customers using its on-demand services, such as Amazon Elastic Compute Cloud (EC2) and Amazon Bedrock. EC2 offers scalable cloud servers for businesses operating applications and workloads, while Bedrock allows developers to access AI models and create generative AI applications.

By maintaining this distinction, AWS ensures that customers needing flexible computing resources can still access them, even as the company commits to substantial infrastructure growth. The remarks underscore the increasing significance of securing cloud capacity as technology companies strive to bolster their AI capabilities. They also highlight the capital-intensive nature of this expansion, with major cloud providers investing heavily ahead of anticipated customer demand.

Amazon is set to release its third-quarter financial results on October 29, and investors will be closely watching for updates on AWS growth, infrastructure spending, and capacity expansion.