Andy Jassy says AWS capacity for 2027 is "largely sold out" and a "good chunk" of 2028 capacity is also sold, though AWS reserves some capacity for on-demand

If you need AWS infrastructure for a large project in 2027, you may have to pay a premium or explore alternative providers.

Amazon Web Services (AWS) CEO Andy Jassy revealed on a recent Andreessen Horowitz podcast that the cloud provider's capacity for 2027 is "largely sold out," with a "good chunk" of 2028 capacity also committed. Jassy specified that the year 2026 is already sold out. He noted that AWS intentionally reserves some capacity for on-demand customers to maintain flexibility. This announcement indicates a significant level of pre-commitment for AWS's infrastructure resources extending several years into the future, highlighting strong demand for cloud services. The company's strategy involves balancing long-term commitments with the need for immediate availability.

The "largely sold out" status for 2027 and committed capacity for 2028 suggests a prolonged period of high demand and potential constraints on readily available cloud resources. This could signal a shift in pricing power towards hyperscalers, making it more challenging for customers to secure significant new deployments without substantial long-term commitments or higher costs. Companies relying on ample, flexible AWS capacity for future growth or migration plans may need to accelerate their planning and potentially lock in terms sooner than anticipated.

AWS's deliberate reservation of some capacity for on-demand services indicates a strategic effort to balance revenue predictability with customer service for immediate needs. This approach might lead to a tiered availability model where reserved capacity offers stability, while on-demand access becomes scarcer or more expensive. Competitors may see an opportunity to capture market share by emphasizing greater capacity availability and more flexible contract terms for customers unable to secure resources with AWS.