Amazon AWS cloud capacity sold out through 2027, Andy Jassy says amid AI boom

Amazon CEO Andy Jassy says AWS cloud computing capacity is largely sold out through 2027, with a significant portion of 2028 capacity already booked amid surging AI demand.

Amazon CEO Andy Jassy said on Friday, October 23, that Amazon Web Services (AWS) has largely sold out its cloud computing capacity through 2027, with a significant portion of its 2028 capacity already committed. Artificial intelligence companies and enterprises are increasingly bidding for computing resources, leading to an increase in pressure on cloud infrastructure providers, as mentioned in the comments, according to Reuters.

On a video podcast hosted by Andreessen Horowitz co-founder Ben Horowitz and general partner Erik Torenberg, Jassy said that Amazon is considering spending more than its $220 billion in capital investment in 2026 on infrastructure projects. The business is increasingly being demanded to perform AI computing, but a shortage of memory, electricity and data centre capacity is posing challenges to its growth.

Amazon AWS capacity booked as AI demand grows

The company has booked the majority of its capacity for 2027, and a significant amount for 2028, Jassy said. This includes Amazon Bedrock and Amazon Elastic Compute Cloud (EC2), which the company still plans to allocate some resources for on-demand consumption.

Infrastructure is not just about data centres, Jassy said. Power supplies and memory parts are also in tight supply, and he does not foresee the memory crunch coming to an end in 2027.

AWS supplies cloud computing infrastructure to businesses of all sizes and around the world. It's also using its EC2 service to launch virtual servers for running apps, and Bedrock is a service that enables customers to create generative AI apps with varying AI models.

Pragya Singha Roy