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AWS Growth Surges Past 30% as Amazon Invests Heavily in AI Infrastructure

Guavy AI Editorial Team Published August 14, 2026

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Amazon's cloud computing business, Amazon Web Services (AWS), is growing at an incredible rate of 37% year-over-year. This growth has caught some investors off guard, as they may not immediately think of Amazon when considering AI companies.

AWS is the No. 1 competitor by market share, with a 28% market share last quarter. In Q2, it accounted for 21% of the company's total revenue but contributed 60% of its operating profits.

While AWS growth has been rapid, it's accelerating even further. The year-over-year growth rate in Q3 was 20%, followed by 24% and 28% in Q4 2025 and Q1 2026, respectively.

Amazon is investing heavily in AI computing infrastructure, with capital expenditures expected to total around $220 billion this year. This will eventually lead to increased computing capacity and revenue for the company.

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