Amazon raises 2026 capex to $220 billion as memory costs climb

The company says spending will still fall short of demand in 2026, with the same capacity constraint expected to persist into 2027.

Summary

Amazon has increased its 2026 capital expenditure forecast to $220 billion, citing higher memory costs. The company said that even at that spending level it still will not have enough capacity to meet all of its demand in 2026, and it expects the same supply-demand imbalance to remain in 2027. The update points to continued pressure from the buildout of AI infrastructure, where memory is a critical input for data center expansion and server deployment.

Terms & Concepts
  • capex: Capital expenditure on long-term assets
  • memory: Data center chips used to store and process data
  • capacity: Available infrastructure to serve demand