(Bloomberg) – Amazon.com Inc. warned investors that he could face capacity constraints in his cloud computing division despite the intention to invest some $ 100 billion this year, most of the funds Towards data centers, local fleas and other equipment to provide artificial intelligence services.
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The chief executive officer Andy Jassy, determined that Amazon becomes an AI supermarket, passes large to keep the company’s advantage in compusing cloud services. However, he warned that growth would be “lumpy” and suggested that Amazon could deal with capacity problems linked to delays in obtaining equipment and non-enough electricity.
“It is true that we could grow more quickly without some of the constraints of capacity,” said Jassy at a conference call on Thursday after the publication of the results of the fourth quarter.
The concerns echo those of Rival Microsoft Corp., who said that last week, her Cloud sales growth had been injured because she had not had enough data centers to manage demand for her IA products .
Jassy said that the supply of fleas – third parties and the Amazon flea design unit – and the power capacity limit the capacity of Amazon web services to put new data centers online. These constraints will probably relax in the second half of 2025, he said.
Amazon spent $ 26.3 billion in capital expenses in the last three months of 2024, the vast majority of which went to AWS linked projects. Jassy told analysts on the appeal that the amount was “reasonably representative” of the expenditure rate that the company planned to make in 2025.
The company said that AWS revenues had jumped from 19% to $ 28.8 billion in the quarter enclosed on December 31. It was the third consecutive period of 19% for the cloud unit. The operating result generated by the unit was $ 10.6 billion, exceeding the average projection of $ 10.1 billion.
“AWS growth has not accelerated as expected and has rather equaled third quarter levels, which indicates that the company is challenged by the same types of capacity constraints faced by Google and Microsoft rivals,” said Sky Canaves, analyst at Emarketer.
Jassy’s warning on AWS growth constraints has overshadowed a fairly solid holiday district, suggesting that the company’s main electronic and logistics activity repels competition from Walmart Inc. and the rear reduction like TEMU and Shein.
