Amazon raises 2026 capital spending to $220 billion as memory costs climb
Amazon raised its 2026 capital expenditure target to $220 billion in its second-quarter earnings report, citing rising costs for the memory chips used in its data center buildout. Its AWS cloud division grew sales 37% year over year, beating analyst forecasts of 31% growth.
Amazon raised its annual capital spending target to $220 billion in its second-quarter earnings report released Wednesday, up from earlier guidance. Executives said the increase reflects higher prices for the memory chips needed to build out artificial intelligence infrastructure.
The company's AWS cloud unit grew revenue 37% year over year, well ahead of Wall Street's forecast of 31% growth. Analysts said the results suggest Amazon's heavy AI spending is beginning to pay off in cloud demand.
The company reiterated it aims to protect profit margins despite the higher outlay. Investors will watch upcoming quarters closely to see whether the elevated capital spending translates into sustained long-term growth.
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