Andy Jessy, CEO of Amazon Web Services (AWS), said on an a16z venture capital YouTube podcast that the company has already committed most of its cloud compute capacity for 2027 and has significant bookings extending into 2028.
"Nearly everything is sold out for 2027. We always keep some capacity in reserve, but for most larger capacity units we can’t take new orders. We also have significant demand for 2028," Jessy said on the podcast.
Which services are affected?
Jessy noted that the strong demand affects not only EC2 virtual servers, used to run online applications in the cloud, but also Bedrock. Bedrock is a fully managed service for building and scaling generative AI applications.
These remarks indicate that rising demand for generative AI workloads is a key factor behind the heavy capacity commitments.
Context: accreditation and sovereign cloud
The comments followed the company’s quarterly results disclosures: AWS recently obtained NATO Restricted (NR) accreditation covering all NATO member states, enabling the alliance’s members to use AWS services under a unified, controlled security framework.
AWS also launched a sovereign European cloud in January, a move aimed at meeting region-specific regulatory and security requirements.
Why this matters
Long-term capacity bookings suggest sustained high demand in the cloud market, particularly driven by growing AI application deployments. Advance commitments can limit short-term availability for other customers while providing revenue and capacity-planning certainty for AWS.
AWS’s recent security accreditations and the introduction of a sovereign cloud further strengthen its position with customers that face strict data and regulatory constraints.
(Source: a16z YouTube podcast, AWS announcements.)
