Amazon CEO Andy Jassy said AWS cloud capacity is largely sold out through 2027, with significant commitments already extending into 2028, as demand for AI infrastructure from AI labs and enterprises outpaces what Amazon can build. Jassy made the remarks on a video podcast with Andreessen Horowitz co-founder Ben Horowitz and general partner Erik Torenberg.
Jassy said 2026 capacity is already sold out, and that the big chunks of 2027 are spoken for. He added that a good chunk of 2028 is sold as well.
“2027 is largely sold out. We always leave a certain amount for on-demand and our inference service Bedrock, or EC2”— Andy Jassy, CEO of Amazon
Amazon does hold some capacity back. Jassy said the company always reserves a portion for on-demand customers and for its own services, including Bedrock, which gives customers access to AI models, and EC2, its cloud server business.
Key facts
- 01Andy Jassy said AWS capacity for 2027 is largely sold out and a good chunk of 2028 is already committed.
- 02He said 2026 capacity is already sold out, against a planned capex of about $220 billion this year.
- 03Jassy pointed to limits on data center space, power and memory, and said he doesn't expect the shortage to end in 2027.
- 04Amazon keeps some capacity in reserve for on-demand use and for its Bedrock and EC2 services.
- 05Amazon reports third-quarter results on October 29.
The sold-out horizon lands against Amazon's plan to spend about $220 billion in capital expenditure in 2026. Jassy said Amazon is struggling to keep pace with demand and could invest much more in capacity, adding that doing so "wouldn't be a bad use of capital" given that this year's supply is already booked.
On an earlier investor call, Jassy had already flagged the gap, saying of the $220 billion plan: "Even at that amount, we will still not have enough capacity to meet all of the demand we have in 2026." On the podcast, he named the constraints as data center space, power and memory.
“There's only so much data center and power today. There's only so much memory.”— Andy Jassy, CEO of Amazon
Jassy also said he does not expect that shortage to end in 2027, putting the supply crunch on a multi-year timeline rather than a single tight quarter.
Amazon has not named the customers behind the commitments, nor the regions, data centers, chip types or quantities involved. The characterization of capacity as largely sold out comes from Jassy's own remarks, not from audited figures.
Amazon is scheduled to report third-quarter results on October 29.
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