AWS exceeds Wall Street’s expectations as demand for cloud infra remains high

Amazon’s cloud infrastructure service, Amazon Web Services (AWS), is on track to record its strongest growth in three years, driven by the AI ​​industry’s unprecedented demand for computing power.

AWS is growing 20% ​​year over year and ended the third quarter with sales of $33.1 billion in the first nine months of the year, Amazon announced in its announcement. Third quarter earnings release Thursday Business segment operating income rose to $11.4 billion in Q3 from $10.4 billion in the same period in 2024.

“AWS is growing at a pace we haven’t seen since 2022, re-accelerating to 20.2% YoY,” Amazon President and CEO Andy Jassy said in the company’s earnings announcement. “We see strong demand in AI and core infrastructure, and we’re focused on accelerating capacity – more than 3.8 gigawatts have been added in the last 12 months.”

AWS launched an infrastructure region in New Zealand during the quarter and has three more regions in the pipeline.

The cloud infrastructure provider also secured several new contracts in Q3 across various industries, including some notable names in the AI ​​market. In July, AWS has partnered with Perplexity AI Browser to launch the company’s enterprise product. AWS partnered with Cursor in the third quarter.

AI’s intense infrastructure needs have also been a boon for AWS’s competitors. OpenAI and Oracle have reportedly signed a $300 billion cloud computing deal 2027 which starts in September. The pair also struck a deal OpenAI will give Oracle $30 billion a year For data center services. Last week, Google and Anthropic announced a cloud deal worth several billion dollars.

These huge deals come despite skepticism about how much cloud infrastructure will be needed in the future and whether the industry is headed for bubble territory. However, it makes sense for cloud companies like AWS to take advantage of a market where customers are willing to pay big bucks for their services.

“You’re going to see us be very aggressive in terms of investment capabilities because we see the demand,” Jacey said of investing in AI infrastructure. “As fast as we’re adding capacity now, we’re monetizing it.”

The news comes two days after Amazon made the announcement 14,000 corporate job cutsBecause it wants to invest more in its AI strategy.