Amazon's $496 Billion AWS Backlog Sparks Long-Term Growth Bets
Amazon's AWS cloud computing segment has reached an unprecedented level of demand, with a backlog exceeding $496 billion at its current run rate. This staggering figure indicates that it would take nearly three years to clear out the backlog, assuming no new orders are placed.
The company is spending heavily to build out data centers and meet growing demand for cloud computing capacity, with plans to invest $220 billion in capital expenditures this year. CEO Andy Jassy acknowledged during Amazon's conference call that it won't be able to fulfill demand until 2028.
This backlog is a testament to the rapid growth of the cloud computing industry, driven by increasing demand from companies participating in the AI arms race. As a result, Amazon is poised for long-term growth, with its stock trading at a relatively low historical valuation.