Amazon’s 2026 capital expenditure guidance stands at approximately $220 billion following its July 30 earnings release, up from the $200 billion target set in February and reaffirmed in April. The increase stems primarily from elevated memory-chip costs and the need to expand AWS data-center capacity amid surging generative AI demand. AWS revenue rose 37% year-over-year in Q2 to a $169 billion annualized run rate—its fastest pace in 18 quarters—while the remaining-performance-obligation backlog reached $496 billion, with significant customer commitments already extending into 2028. Management has noted that even this elevated spend will leave capacity short of demand through 2027, pressuring near-term free cash flow as equipment purchases outpace operating cash generation. The next quarterly update, expected in late October, will provide the latest visibility on cost trends and utilization.