Amazon's Cloud Order Book Is Full Through 2027 — Now Comes the Hard Part
Published on 10/25/2026 at 16:30 | Editorial boerse-global.de
Andy Jassy has a pleasant problem. Amazon's cloud unit has already booked out nearly all of its AWS capacity for 2027, and a hefty slice of 2028 is spoken for as well, the CEO said, according to Deutschlandfunk. Demand for artificial intelligence computing keeps running well ahead of what the company can physically deliver — a signal of durable appetite that nonetheless caps how fast the division can grow.
The caveat matters for anyone reading the reservations as pure upside. The bulk of those commitments cover large capacity allocations; a sliver of computing power stays available for on-demand use through EC2 and Bedrock. AWS is not sealed shut, in other words — but the runway for new bookings is narrowing.
Money alone won't clear the bottleneck
Amazon has already earmarked roughly $220 billion for data centers and hardware in 2026, and Jassy told Reuters he sees room for spending beyond that given the strength of demand. No formal increase to the capital plan has been confirmed.
Throwing more capital at the problem doesn't dissolve it. Memory, power supply and data-center buildouts set the pace, and Jassy expects the memory squeeze to persist into next year. How quickly Amazon can serve the demand it has already won therefore hinges on securing physical components, not on signing bigger checks.
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The company is hedging on the silicon side too. Its in-house Trainium processors deliver a 30–40% better price-performance ratio than comparable alternatives, according to Jassy — a gap he considers essential, since AI models must become markedly cheaper to run before more enterprise applications adopt the technology. Cheaper compute and added capacity are separate ingredients of the same growth story.
Germany, Indiana and a nuclear bet
Capital deployment is spreading well beyond US soil. On Tuesday Amazon said it will invest more than €16 billion in Germany in 2027, including €4.8 billion to expand the AWS region in Frankfurt.
Power is the other front. On October 19 the company agreed with American Electric Power and X-energy to explore a planned nuclear project in Indiana, built around small modular reactors with a combined capacity of 960 megawatts. Amazon would fund development and, should the project go ahead, buy the electricity under a long-term contract.
Developers got a gift the same day: TorchNeuron, a free, open-source tool that runs PyTorch code on Trainium chips after nothing more than a configuration change — no rewriting required, Reuters reported.
Morgan Stanley moves first
Ahead of the numbers, Morgan Stanley lifted its Amazon price target to $350 from $335 on October 19, media reports said, keeping an "Overweight" rating and listing the stock among its preferred picks.
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The third-quarter 2026 results land after the market close on Thursday, October 29, with the earnings call set for 2 p.m. Pacific time. Analysts expect double-digit revenue growth year over year, according to CNBC, while earnings per share should hold roughly flat.
That makes the report about more than demand. Investors will be listening for guidance on spending and on how fast fresh capacity actually comes online. The long-dated bookings underpin AWS's growth outlook — but converting them into revenue depends on how deftly Amazon clears the physical hurdles in its way.
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