Amazon Web Services (AWS) has now sold nearly all of its available cloud capacity for next year. For 2028, a large portion of available capacity has already been sold. According to CEO Andy Jassy, the company is barely keeping up with high demand for AI infrastructure.
This is reported by Reuters. AI developers and large companies are increasingly consuming the available cloud capacity, despite Amazon’s substantial investments to expand its offerings. However, customer demand is growing faster than Amazon can scale capacity.
The capacity that AWS could deliver this year is now sold out. For next year, this applies to virtually all large capacity blocks. The company has also already made many commitments to customers for 2028.
That does not mean, however, that new customers will not have access to AWS services. Amazon always keeps capacity in reserve for on-demand services. These include Elastic Compute Cloud (EC2), which allows customers to deploy virtual servers, and Amazon Bedrock, which provides access to AI models for generative AI applications.
Substantial investments
Amazon previously announced plans to invest approximately $220 billion this year. A significant portion of that spending is earmarked for expanding its cloud and AI infrastructure. According to Jassy, Amazon could even invest considerably more without wasting capital. After all, demand for capacity is so high that Amazon can put additional investments to use quickly.
These statements illustrate just how profoundly the rise of GenAI is transforming the cloud infrastructure market. Whereas cloud providers traditionally make capacity available for customers to purchase as needed, many customers now commit to infrastructure years in advance. AI companies, in particular, are trying to ensure they have sufficient computing power to train and run their models.
These substantial investments also entail financial risks. Cloud providers are spending billions on data centers, chips, and other infrastructure. However, future revenues remain dependent on developments in the AI market.