Amazon AWS Backlog Surges to $496 Billion as Cloud Computing Demand Soars

Amazon's AWS division is booming due to high demand for cloud computing services. The company has a massive backlog of $496 billion, which is increasing at a triple-digit percentage rate year over year.

This growth is driven by the ongoing AI build-out, with new data centers being built to meet the rapidly growing demand for computing capacity. Amazon's CEO Andy Jassy stated that the company cannot build computing capacity fast enough to fully meet demand in 2026 and the shortage will likely persist through 2027.

AWS' operating margin has improved significantly, reaching 39% in the second quarter of 2026. This is a significant improvement compared to the lower 20% range seen earlier in 2025.