AWS largely booked up through 2027
Amazon chief Andy Jassy says a significant share of capacity for 2028 has already been committed.
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Amazon Web Services’ cloud infrastructure is largely sold out through 2027, according to chief executive Andy Jassy. Jassy says large portions of 2028 have also already been reserved, mainly because of rapidly growing demand for computing power for artificial intelligence.
Jassy made the comments on Friday in a podcast hosted by venture capitalist Andreessen Horowitz. According to him, the available AWS capacity for 2026 has already been sold and 2027 is also largely filled. The chief executive says significant commitments have already been made for 2028.
This does not mean every server and data centre is completely sold out. Amazon is holding back capacity for customers who need computing power immediately and for services such as Bedrock and EC2. Bedrock gives companies access to AI models; EC2 provides virtual servers for a range of applications.
The shortage is due to companies and AI laboratories increasingly needing capacity to train and use models. This requires large quantities of specialised chips, data centres and electricity. Amazon is trying to expand its infrastructure quickly, but Jassy said demand is growing faster than supply.
Amazon expects to spend around 220 billion dollars on capital expenditure this year. That figure includes investments in data centres, chips, robots and satellites, among other things. According to Jassy, Amazon could invest even more without that in itself being unwise, as long as demand for cloud capacity remains high.
The development could have consequences for companies that depend on external cloud servers. If capacity is scarce, delivery times may increase or customers may face higher prices. For European and Dutch organisations, it also means that the availability of AI services partly depends on investments by a few major American cloud companies.
At the same time, it is not certain how long the current boom will last. According to reports, Amazon can adjust some of its orders for server and networking equipment if demand declines. Jassy’s comments are also the company’s own estimate, rather than an independent measurement of the global cloud market.
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Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The article’s central point is based on a Reuters report about Andy Jassy’s recent comments. The context on AWS services and Amazon’s investments is supported by Reuters and AP; possible consequences are clearly presented as expectations.
- confirmed Andy Jassy said on 23 October that AWS capacity is largely booked through 2027. — Reuters describes Jassy’s comments in the podcast. source
- confirmed A significant share of AWS capacity for 2028 has already been sold. — This is directly attributed to Jassy in the Reuters report. source
- confirmed Amazon expects capital expenditure of around 220 billion dollars in 2026. — Reuters and AP cite this figure. source
- confirmed Bedrock and EC2 are AWS services for AI models and virtual servers respectively. — The Reuters description explains both services. source
- uncertain Scarce cloud capacity can lead to higher prices or longer delivery times. — This is a possible market response, not an established effect in the sources used; it is therefore phrased cautiously. source
Editor's note
It is certain that Andy Jassy said on 23 October that AWS capacity is largely booked through 2027 and partly into 2028. The broader consequences for prices and European customers are possible consequences, not measured effects.Sources
- Amazon cloud capacity sold out through 2027, CEO Jassy says — Reuters via Investing.com
- Amazon to boost spending on AI and other technology by $20 billion — Associated Press