Amazon Web Services plans to double its global data center capacity by 2027 through a $200 billion investment, driven by unprecedented demand for AI infrastructure that's being monetized faster than it can be deployed.
Amazon CEO Andy Jassy has unveiled aggressive expansion plans for AWS, committing $200 billion to double the cloud provider's global infrastructure capacity by the end of 2027. This massive investment responds to overwhelming customer demand for AI compute resources, which AWS is monetizing immediately upon deployment.
Jassy emphasized the unprecedented growth trajectory during Amazon's Q4 2025 earnings call: "We're growing at really an unprecedented rate. Every provider would tell you, including us, that we could actually grow faster if we had all the supply we could take." The company added 3.9 gigawatts of power capacity in the past year alone – double its 2022 total – with plans to double again within three years.
The investment breakdown reveals:
- AI Dominance: 80% of capital expenditures target AI infrastructure
- Core Workload Growth: Non-AI workloads expanding faster than projected
- Monetization Velocity: New AI capacity generates revenue immediately upon activation
- Chip Innovation: Custom silicon driving competitive advantage
AWS's custom silicon portfolio proves central to its strategy. Trainium accelerators and Graviton CPUs already deliver a $10 billion annualized run rate, growing at triple-digit percentages year-over-year. The Trainium2-powered "Project Rainier" – the world's largest operational AI cluster with 500,000 chips – currently trains Anthropic's models. Jassy confirmed Trainium3 chips will be fully allocated by mid-2026, with Trainium4 arriving in 2027 featuring 6x compute performance and 4x memory bandwidth improvements over current generation.
Despite AWS posting $35.6 billion in Q4 revenue (24% YoY growth) and $128.7 billion for FY2025 (20% growth), Amazon shares dipped 11.5% in after-hours trading amid broader tech sector concerns. When questioned about financial safeguards, Jassy remained steadfast: "This is an extraordinarily unusual opportunity to forever change the size of AWS and Amazon as a whole. We see this as an unusual opportunity, and we are going to invest aggressively here to be the leaders."
The expansion addresses fundamental industry shifts as AI transforms customer experiences and application development. Jassy noted that enterprises implementing AI at scale are consolidating data and workloads in the cloud, creating sustained tailwinds for AWS. With an annualized run rate now at $142 billion – up from $80 billion in 2022 – AWS demonstrates confidence in its capacity planning methodology that minimizes wasted resources while capturing the AI infrastructure boom.
Amazon Investor Relations | AWS Global Infrastructure | Trainium Chip Details
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