Why AWS's cloud capacity is mostly booked through 2027
What's the story
Amazon CEO Andy Jassy has revealed that the company's cloud computing arm, Amazon Web Services (AWS), is running out of capacity. In a recent conversation with Andreessen Horowitz co-founder Ben Horowitz and general partner Erik Torenberg, Jassy said AWS's cloud computing capacity is largely booked through 2027. The high demand for AI infrastructure has been a major contributor to this situation.
Capacity challenges
AI demand driving cloud computing capacity constraints
Jassy admitted that Amazon is having a hard time keeping up with the relentless demand from AI labs and businesses.
He said, "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."
EC2 offers cloud servers for running applications while Bedrock provides access to AI models for building generative AI apps.
Financial investments
Amazon may increase capital expenditure for cloud expansion
Earlier this year, Amazon had announced a capital expenditure of about $220 billion for 2026.
Jassy hinted that the company could invest even more, given that cloud-computing capacity for 2026 is already sold out.
He said, "We could invest a lot more and it wouldn't be a bad use of capital."
These investments are likely to boost platforms like EC2 and Bedrock to meet the growing demand.