What happened
Amazon Web Services (AWS) reported a 20% revenue increase, reaching $33 billion in the third quarter, marking its strongest growth since 2022. This expansion, driven by AI and core infrastructure demand, prompted an upward revision of capital expenditure forecasts. AWS now projects $125 billion in capital expenditure for 2025, with further increases anticipated in 2026, specifically to bolster data centre capacity.
Why it matters
The substantial increase in AWS capital expenditure for data centre capacity, driven by AI demand, introduces a tightened dependency on a single cloud provider's infrastructure. This expansion raises due diligence requirements for procurement and platform operators regarding vendor lock-in and future service availability. It also increases the oversight burden for IT security teams managing an expanding, critical infrastructure footprint.
