The Pulse
Amazon Says AWS Capacity Is Largely Sold Out Through 2027
Amazon CEO Andy Jassy says AWS has sold out its 2026 cloud capacity and booked most of its 2027 supply, with a significant share of 2028 also committed. He links the shortage to demand for AI infrastructure, even as Amazon plans about $220
AI.info Team · Written with AI · fact-checked ·
Amazon Web Services has sold out most of its cloud-computing capacity for 2027, CEO Andy Jassy said on October 23, with customer commitments already covering a significant portion of 2028. The disclosure points to a supply constraint facing Amazon as demand for computing infrastructure grows among AI companies and enterprise customers.
2027’s “big chunks” are booked
“2027 is largely sold out. We always leave a certain amount for on demand and our inference service bedrock, or EC2, but largely sold out all the big chunks. A good chunk of 2028 is sold out,” Jassy said in a video podcast with Andreessen Horowitz co-founder Ben Horowitz and general partner Erik Torenberg.
Jassy said AWS capacity for 2026 is already sold out. His qualification matters: “largely sold out” does not mean every instance or service is unavailable. AWS keeps some capacity for on-demand customers and services, including Bedrock, which lets customers work with AI models, and EC2, which provides cloud computing capacity for running applications.
The comments describe commitments across AWS cloud capacity, not a claim that every reserved unit is dedicated to AI. Jassy pointed to demand from AI labs and enterprises as the pressure behind the buildout, but the capacity AWS sells also serves customers running ordinary applications and other workloads.
$220 billion in spending, with demand left unmet
Amazon has said it expects to spend about $220 billion on capital expenditure in 2026. Jassy said the company could spend more on cloud capacity without making a poor investment, given that its 2026 supply is already sold out. The spending figure covers Amazon’s capital expenditure, rather than an AI-only budget.
The gap between booked capacity and unmet demand puts a practical limit on how quickly AWS can turn customer interest into available computing. Building out cloud infrastructure takes more than committing money: Amazon must add the facilities and equipment that make capacity usable. Jassy’s remarks do not specify how much additional capacity the company plans to bring online or how much of the waitlist comes from AI customers.
A broader signal for AI infrastructure
For AI developers, limited cloud availability can affect when and where they train or run models. AWS is one of several large providers selling computing resources to AI firms and businesses adopting AI, so a shortage at Amazon offers a glimpse of how demand is pressing against the infrastructure available to serve it.
Jassy’s forecast also stretches beyond the immediate buildout: a “good chunk” of 2028 is already sold. The wording leaves the size of those commitments undefined, and the on-demand reservation means the company has not booked every part of its future supply to specific customers.
Amazon’s October 29 results will add context
Amazon is scheduled to report third-quarter results on October 29. The report will provide a near-term opportunity for investors to hear more about AWS, its infrastructure spending and how the company is responding to demand that Jassy says already exceeds available capacity.
For now, the clearest measure is Jassy’s own booking outlook: AWS has sold out its 2026 capacity, most of its large 2027 capacity is spoken for, and some 2028 supply is committed as well.