Amazon Says AWS Capacity Is Largely Committed Through 2027 as AI Demand Surges

Amazon Web Services has committed most of its large cloud-capacity blocks through 2027, while a significant portion of 2028 capacity is also spoken for, Chief Executive Andy Jassy said in an a16z video podcast released Friday.

Jassy described demand from AI laboratories and enterprise customers as running ahead of available infrastructure. He said Amazon could invest substantially more without considering it a poor use of capital.

Committed capacity is not universally unavailable

The comments do not mean every AWS resource is unavailable to every customer through 2027. Jassy said 2026 capacity was sold out and the major blocks for 2027 were largely sold out, but Amazon deliberately retains capacity for on-demand use and services such as Amazon Bedrock and Amazon EC2.

EC2 provides cloud servers for running applications. Bedrock gives customers access to AI models for building generative-AI applications. The distinction matters for customers seeking ordinary on-demand resources rather than reserving large blocks in advance.

Spending remains in focus

Reuters reported that Amazon had earlier indicated capital expenditure of about $220 billion for 2026. Jassy said the company could invest more as AI demand expands. In the interview transcript, he also described constraints involving data centers, power, memory and accelerators, and the need to balance AI infrastructure with established AWS workloads.

Amazon is scheduled to report third-quarter results on October 29. The comments suggest that long-term reservations are shaping the capacity market, rather than a blanket halt to availability across all AWS services.

Sources

• Reuters report
• Transcript of the a16z interview with Andy Jassy