Amazon’s cloud division reports a $496 billion backlog, signaling strong future revenue amid rising AI-driven demand for data centers.
Amazon’s Amazon Web Services (AWS) backlog reached $496 billion in the second quarter, reflecting unrecognized revenue from future contracts. The figure underscores robust demand for cloud computing, particularly as AI adoption accelerates globally.
AWS contributed 60% of Amazon’s operating income in Q2, despite accounting for just 21% of total sales. The company plans to invest $220 billion in capital expenditures this year, primarily to expand data center capacity. At its current run rate of $42.2 billion per quarter, the backlog would take nearly three years to fulfill.
The backlog highlights AWS’s dominance in cloud infrastructure and Amazon’s aggressive push to meet surging demand. However, supply constraints may delay revenue recognition as the company races to build capacity.