Amazon says it will spend even more on AI infrastructure this year – and still won’t have enough capacity to satisfy customer demand. Despite the increase, CEO Andy Jassy said Amazon expects AI capacity to remain constrained through 2027, with contracted demand extending into 2028. Demand Outpaces AWS BuildoutAmazon’s updated spending forecast highlights how rapidly hyperscalers are expanding AI infrastructure. He separated AI infrastructure spending into two categories: long-lived data centers and shorter-lived servers and networking equipment. AI Growth Boosts Traditional Compute and StorageAmazon argued that AI workloads are increasing demand for conventional cloud infrastructure rather than replacing it.