Amazon is spending $220 billion on data centers, and a Motley Fool analysis argues that rising AI-computing demand justifies the outlay: AWS revenue grew 37% year over year in Q2, and its backlog reached $496 billion, growing at a triple-digit pace.
Amazon CEO Andy Jassy said AWS does not have enough computing power to meet demand in 2026 and likely 2027, with demand for 2028 already appearing. The article says capital expenditures have exceeded operating cash flow, so Amazon is using both cash reserves and debt to fund the expansion.
The article also reports that AWS operating income rose 64% year over year in Q2. It says a large share of spending in recent years went to land and facilities, with more computing units expected to come online over the next few years.
