“We're on pace with the capacity build that we talked about a few quarters ago, where we said we expect to have double the power capacity by the end of 2027 that we had in 2025, and we continue to be on that track.”

In context

“Andy Jassy (CEO): Yeah. I think that there are several reasons for why we saw such significant growth, we're really pleased and excited. It's fifth straight acceleration quarter, largest acceleration in 18 quarters. I think there are several things that are driving it. I think the first part is that customers are choosing AWS in part because it has the broadest functionality across both cloud core and AI, in part because it has the strongest operational performance and security, in part because as more and more companies are bringing their inference workloads to production, they want it to live near the rest of their workloads and data, and so much more of it lives in AWS than anywhere else. I think there are a couple other things going on here on the core side. AI is obviously growing at a very rapid rate, as we talked about, well over $25 billion in annual revenue run rate at this point. The core business is growing very quickly as well, and I think there's at least a couple things at play. One is that increasingly more enterprises are building their transformation plan to move from on-premises to the cloud. Remember, by the way, that 85% of the global IT spend is still on premises. That equation is going to flip in the next 10 to 20 years. You see more and more enterprises that are moving and building plans to move to the cloud, we're winning the lion's share of those with the capabilities I mentioned earlier and the advantages. AI is growing, at such a rapid rate, and it's pulling along core alongside of it. That's because the post-training and the reinforcement learning and all the agentic tool use is being driven on CPU and core. With the leading CPU chip in Graviton, it makes AWS an even more attractive choice. Yes, we're adding a lot of capacity, there are a lot of other reasons why it's growing. We're on pace with the capacity build that we talked about a few quarters ago, where we said we expect to have double the power capacity by the end of 2027 that we had in 2025, and we continue to be on that track.”