AWS Cloud Capacity Near Full Through 2027, CEO Jassy Warns of AI Demand Surge
Andy Jassy said AWS's cloud capacity is essentially sold out through 2027 with many commitments into 2028 due to booming AI demand.
Amazon Web Services CEO Andy Jassy told listeners on a podcast with Andreessen Horowitz co-founder Ben Horowitz and partner Erik Torenberg that the firm’s cloud infrastructure is largely booked through 2027, with a significant share of 2028 already allocated. The comment reflects accelerating demand for AI-focused compute from both research labs and commercial customers, which Jassy said is straining the company’s ability to keep up.
He explained that AWS still reserves a portion of capacity for on-demand use and for its inference services, such as Bedrock and EC2, but the “big chunks” are sold out. Earlier this year, Amazon announced a $220 billion capital-expenditure plan for 2026, and Jassy suggested the company could spend even more without it being a poor use of capital. The statements come ahead of AWS’s third-quarter results scheduled for October 29.
Why it matters
Tight AWS cloud supply could limit AI projects and affect businesses that depend on Amazon's infrastructure.
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