Amazon’s cloud computing business has sold out most of its available capacity through 2027, with substantial commitments already extending into 2028, as demand for artificial intelligence infrastructure continues to outpace supply.
Amazon Chief Executive Officer Andy Jassy disclosed the development on Friday, October 23, during a video podcast with Andreessen Horowitz executives Ben Horowitz and Erik Torenberg.
Jassy said Amazon Web Services (AWS) was struggling to keep pace with demand from artificial intelligence research laboratories and corporate customers seeking computing power to develop and operate AI applications.
He explained that although the company reserves some capacity for customers who need computing resources on demand, most of its major capacity allocations for 2027 had already been committed. A significant portion of its 2028 capacity was also booked.
Jassy indicated that Amazon could invest substantially more in cloud infrastructure without wasting capital, given the level of demand already secured.
The development highlights the growing importance of cloud computing in the global AI race, as technology companies invest heavily in data centres, specialised chips, networking equipment and other infrastructure needed to run advanced AI systems.
Amazon has projected capital expenditure of approximately $220 billion for 2026, reflecting its aggressive investment in AI and other technology infrastructure.
However, the expansion also presents operational challenges, as building data centres and securing the necessary equipment take time.
Amazon is scheduled to release its third-quarter financial results on October 29. Investors will be watching for further evidence that rising AI demand is translating into stronger cloud revenue and returns on the company’s substantial investments.
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