- Published on
AWS Capacity Largely Sold Out Through 2027, With On Demand Headroom Reserved
- Authors
- Name
- DeepHorus
Amazon CEO Andy Jassy said AWS’s large committed cloud capacity is largely sold out through 2027, with much of 2028 already allocated. The company still reserves headroom for On Demand, EC2 and Bedrock, he said in a video podcast with Andreessen Horowitz’s Ben Horowitz and Erik Torenberg. Reuters reported the remarks on October 23.
AWS sells capacity assurance through On-Demand Capacity Reservations and Capacity Blocks for ML, which let customers reserve instances in a named Availability Zone or fixed future windows. In January, AWS raised Capacity Blocks for ML rates by about 15% across every region, covering P5en, P5e, P5 and P4d GPU instances plus Trn2 and Trn1. Jassy said capacity for 2026 is already gone.
The scale is striking. Jassy said Amazon could invest well beyond the roughly $220 billion in capital expenditure planned for this year without wasting capital. “2027 is largely sold out,” he said, adding that AWS leaves some capacity for on-demand services and EC2 but has sold “all the big chunks.”
Cloud analyst David Linthicum argued the reporting overstated the position. He distinguished pre-reserved hyperscale blocks from day-to-day enterprise allocation, saying customers can likely still allocate GPU capacity in the AWS console. He warned that confusion around reserved instances, on-demand services and committed capacity can lead to bad strategy.
Reddit discussion focused on current constraints. A developer posting as cbigsby described a rise in compute capacity issues for regular EC2 instances, including trouble obtaining enough On Demand capacity. Richard T., a technical operations manager, said his team adopted reserved instances to secure capacity against projected growth.
Ian Rae called reserving resources out of worry an “anti-cloud pattern.” AWS offers EC2 Capacity Manager, which aggregates capacity data and reports reservation efficiency. Amazon reports third-quarter results on October 29, when remaining performance obligations will show contracted revenue.
