Amazon's CEO Andy Jassy has finally explained why they are spending so much money on building data centers. Jassy noted that the capital expenditures for 2026 will increase by $20 billion to $220 billion, which led to a 15.3% rise in stock prices.
He also mentioned that the demand for 2028 is 'striking,' and that Amazon Web Services could become a business with annual revenues of $1 trillion.
These expenditures, according to Jassy, are necessary to meet the growing demand, even if it temporarily harms free cash flow.
