Amazon CEO says AWS Cloud capacity sold out through 2027 as AI demand surges

Amazon CEO Andy Jassy said that Amazon Web Services (AWS) has almost sold all its computing capacity for 2026 and 2027. Large parts of its capacity for 2028 have also already been promised to major companies and artificial intelligence (AI) labs.

In a podcast appearance, Jassy said that even though Amazon plans to spend about $220 billion on building and expanding its infrastructure in 2026, demand from businesses and AI projects is growing faster than the company can supply computing power.

Although most large blocks of computing capacity through 2027 have been taken, AWS is keeping some capacity available for services that customers can use when they need them. These include Amazon EC2, which provides cloud computing power, and Amazon Bedrock, its platform for generative AI. This means smaller developers and individual users can still access these services.

Strong demand has helped AWS's AI business reach an annual revenue rate of more than $25 billion in just three years since the generative AI boom began. This is faster than the early growth of AWS's original cloud business.

Jassy stressed that real-world limits, such as a lack of data center space, available electricity, and specialized memory, mean the shortage of computing power will continue well beyond 2027. To get more work done with their available resources, major cloud providers are rapidly using their own chips, including Amazon's Trainium and Graviton processors.

In a video podcast with Andreessen Horowitz co-founder Ben Horowitz and general partner Erik Torenberg, Jassy said Amazon is struggling to keep up with the enormous demand from AI labs and businesses.

Earlier this year, Amazon said it planned to spend about $220 billion on capital investments in 2026.

Jassy said the company “could invest a lot more and it wouldn't be a bad use of capital,” because its cloud computing capacity for 2026 has already sold out.

“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,” he said.

EC2 is an AWS service that provides cloud-based servers for running applications. Bedrock lets customers use AI models to build applications powered by generative AI.

Amazon is scheduled to report its third-quarter results on October 29.