Amazon CEO Jassy says AWS capacity sold out through 2027

Amazon CEO Andy Jassy said on Friday, October 23, that Amazon Web Services' cloud computing capacity is largely sold out through 2027, and that customers have already committed to a large share of 2028, according to Reuters. He made the comments on a video podcast with Andreessen Horowitz co-founder Ben Horowitz and general partner Erik Torenberg. Jassy said Amazon is struggling to keep up with demand from AI labs and enterprises.reuters.com

The remarks show that demand for AI infrastructure is still running ahead of supply at the world's largest cloud provider. That is true even though Amazon has said it plans to spend about $220 billion on capital expenditures in 2026.investing.com

Capacity spoken for

Jassy said 2026 capacity is 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, as quoted by Asharq Al-Awsat, carrying Reuters' report. EC2 provides cloud servers for running applications. Bedrock gives developers access to AI models for building generative AI applications.english.aawsat.com+1

Given how much capacity is already booked, Jassy said the company "could invest a lot more and it wouldn't be a bad use of capital". He also said Amazon could slow its expansion if demand weakened, partly because it does not have to buy all of its servers and networking equipment far in advance.tekno.kompas.com+1

Growth and a growing backlog

The comments follow a strong second quarter for AWS. On Amazon's earnings call, Jassy said AWS revenue rose 36.7% from a year earlier, its fifth straight quarter of faster growth and its quickest pace in 18 quarters. He also said the backlog had reached $496 billion. AWS revenue for the quarter was $42.2 billion, and the business has an annualized run rate of $169 billion. Management raised its 2026 capital spending guidance to $220 billion, pointing to AI-driven demand.finance.yahoo.com

Earnings next week

Investors will look for more detail on Thursday, October 29, when Amazon is scheduled to report third-quarter results. Analysts are expected to focus on AWS growth, infrastructure spending and how fast new capacity comes online. For now, Amazon's main limit is the supply of capacity, not customer demand. In Jassy's words, "Capacity for 2026 is sold out now, and capacity for 2027 is nearly sold out".mk.co.kr+1