The demand for AWS cloud services for training and using artificial intelligence (AI) exceeds the available supply, Amazon stated, adding that it plans to invest about $100 billion in new data centers and AI chips through 2025, Bloomberg reports.
Amazon CEO Andy Jesse emphasized the company’s desire to become a leader in the AI market and declared its readiness to invest heavily in the development of cloud computing. However, the company has faced difficulties in launching new data centers due to problems with the supply of chips from both third-party manufacturers and its own division and limited energy availability.
Jesse is optimistic that these issues will be resolved in the second half of 2025. He also noted that the company’s capital expenditures of $26.3 billion in the last three months of 2024, most of which were directed to AI, indicate the scale of its planned investments for 2025.
Amazon is not the only company experiencing a shortage of capacity to meet the demand for AI. Earlier, Microsoft also reported that its cloud services revenue suffered due to lacking data centers to meet the full demand for AI products.
The problem of significant electricity consumption, in particular for AI needs, was actively discussed in 2024. According to preliminary forecasts, electricity consumption by US data centers could triple by 2028. Electricity demand in the US has already reached a record high in 2024 and is likely to set a new record in 2025.