Amazon Web Services (AWS) CEO Andy Jassy admitted that growth is being stunted by capacity constraints in data centers, stemming from AI chip shortages and energy supply issues. Despite a reported 19% sales increase in Q4, the company’s stock faced a decrease following lower-than-expected first-quarter guidance. Jassy highlighted that AWS’s planned capital investments of $105 billion through 2025 signify the company’s anticipation of sustained AI demand. He stated that current capacity constraints are temporary and expect to ease by late 2025, reflecting persistent strong demand for cloud services.
AWS has expressed that it could be growing faster, if not for constraints on capacity, including AI chip shortages, server component limits, and energy supply issues.
Amazon plans to invest $105 billion by 2025 to enhance its data center capacity amid rising AI demand, indicating a strong long-term commitment to growth.
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