Amazon CEO Andy Jassy said on October 23 that Amazon Web Services' cloud computing capacity is largely sold out through 2027, with a significant portion of 2028 already committed to major corporate customers and AI labs. He made the comments in a video podcast with Andreessen Horowitz.
Jassy noted that despite Amazon's plan to spend approximately $220 billion in capital expenditure during 2026, demand continues to outpace supply. He said the company retains some capacity for on-demand services — including EC2 virtual servers and the Bedrock AI model platform — but that large reserved-capacity allocations are effectively gone through 2027. Physical constraints including data center real estate, power availability, and specialized memory were cited as reasons the shortage is expected to extend well beyond next year. AWS's Q2 2026 cloud backlog stood at $496 billion, up 154% year over year.
For businesses that have not yet secured reserved or committed-use capacity on AWS, this is a practical signal that long-lead planning matters more now than it did a year ago. Organizations relying on on-demand EC2 or Bedrock access are less immediately affected, as Jassy indicated that tier remains available. IT and procurement teams with cloud infrastructure expansion plans in the next 12 to 24 months may want to engage their AWS account team sooner rather than later to understand what reservation options remain.
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