AWS cloud growth accelerates as AI demand strains capacity
AWS recorded its fastest growth in more than four years during the second quarter, but Amazon said it still lacked enough computing capacity to meet customer demand despite raising its 2026 capital spending forecast to $220 billion.
AWS revenue rose 37% year over year to $42.2 billion in the quarter ended June 30. The result exceeded the 31.21% growth expected by analysts surveyed by LSEG and marked the cloud unit’s strongest performance in 18 quarters.
“AWS is booming right now,” Amazon CEO Andy Jassy said during the company’s earnings call. AWS added more than $4.6 billion in revenue from the previous quarter, about 80% more than its previous largest quarterly increase.
Amazon increased its forecast for 2026 cash capital expenditure from approximately $200 billion to $220 billion. Jassy said the additional spending would still not provide enough infrastructure to meet all the demand Amazon expected during the year.
“Even at...
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