AWS sells out capacity through 2028 despite Amazon spending $220 billion

Amazon Web Services has fully committed its data center capacity for 2026, according to Chief Executive Officer Andy Jassy. He disclosed that capacity for 2027 is largely sold out, and portions of 2028 capacity are already under contract.

Amazon is allocating approximately $220 billion in capital expenditures for 2026 to expand its infrastructure, according to Jassy. The investment comes as computing demand from artificial intelligence workloads continues to outpace available supply.

In a separate announcement, SK Hyper revealed it is seeking approximately $350 billion in outside investment for a 15-gigawatt AI data center project in South Korea. The company plans to construct an initial 5-gigawatt phase as part of the buildout.

Computing demand is rising rapidly across hardware providers. Advanced Micro Devices Chief Executive Officer Lisa Su reported a roughly 14-fold increase in agentic AI traffic during 2026, according to company statements.

Infrastructure requirements are expected to require substantial funding over the coming decades. Total global investment in AI infrastructure is projected to reach $31.6 trillion through 2050, according to projections from PwC.

What do these terms mean?

Capital expenditures (capex): Funds used by a business to purchase, upgrade, or maintain physical assets such as facilities, technology, or equipment.

Gigawatt: A unit of power equal to one billion watts, commonly used to measure the generating capacity or electricity consumption of large facilities.

Agentic AI: Artificial intelligence systems designed to operate autonomously, making decisions and completing multi-step workflows with minimal human oversight.