AWS Reaches Growth Milestone

Amazon's cloud division, Amazon Web Services (AWS), has demonstrated its strongest growth since 2022, surpassing analyst expectations. This resurgence alleviates concerns about AWS losing ground to competitors in the cloud computing market. Fuelled by strong demand for AI and core infrastructure, AWS reported a 20% increase in revenue, reaching $33 billion in the third quarter.

CEO Andy Jassy noted that AWS is expanding at a rate not seen in years, prompting increased capital expenditure forecasts for 2025, now projected at $125 billion, with further increases expected in 2026. This investment aims to bolster data centre capacity to meet the growing demands of AI development.

Amazon's overall financial outlook remains positive, with projected net sales between $206 billion and $213 billion for the fourth quarter. The robust performance of AWS is helping to offset slower growth in Amazon's e-commerce sector, reinforcing the cloud unit's position as a key profit driver for the company.