Amazon Lifts 2026 Capex to $220 Billion as AWS Growth Hits 37% but Capacity Still Falls Short
Updated
Updated · CloudTech News · Jul 31
Amazon Lifts 2026 Capex to $220 Billion as AWS Growth Hits 37% but Capacity Still Falls Short
3 articles · Updated · CloudTech News · Jul 31
Summary
$42.2 billion in second-quarter AWS revenue marked 37% year-over-year growth—its fastest in 18 quarters—but Amazon said it still cannot meet all 2026 customer demand.
$220 billion is Amazon’s new 2026 capital spending target, up from about $200 billion, with CEO Andy Jassy saying higher memory costs drove much of the extra $20 billion.
$496 billion in AWS backlog, up from $364 billion three months earlier, shows demand is already stretching into 2027 and even 2028, with most planned 2027 AI capacity already reserved.
$53.1 billion in second-quarter capex and a $7.6 billion trailing 12-month free-cash-flow outflow reflect how data-center buildouts lag demand, with power, equipment and grid connections slowing new capacity.