Demand outstrips supply
Amazon CEO Andy Jassy painted a striking picture of AWS's cloud capacity in a video podcast appearance. According to Jassy, AWS has already sold most of its capacity through 2027. Agreements are also in place with customers for a significant portion of 2028 capacity.
Jassy said they are struggling to meet demand from AI labs and enterprise customers. The company is holding back some capacity for on-demand services.
Which services are affected?
AWS is also allocating capacity for Bedrock, which gives access to different models for building generative AI applications, and EC2, which provides cloud servers for running applications. Jassy said large amounts of cloud resources for 2027 have already been contracted.
Investment plan grows
Amazon had previously said it plans to spend about $220 billion on capital investments in 2026. Jassy noted that 2026 cloud capacity is also sold out and said the company could invest above the planned amount. Amazon is expected to report third-quarter financial results on October 29.
