Amazon reports higher spending to fuel cloud unit sales
Amazon spent $44.2 billion on property and equipment in Q1 2026, fueling a 28% growth in Amazon Web Services (AWS) sales to $37.6 billion. The company aims to spend about $200 billion this year, mostly on data centers, including those customized for AI services.
Amazon.com spent $44.2 billion on property and equipment in the first quarter of 2026, exceeding analysts' estimates. The spending was primarily on data centers to support the growth of Amazon Web Services (AWS), which saw sales rise 28% to $37.6 billion. AWS accounts for about a fifth of Amazon's revenue and most of its operating profit. The company has invested in AI startups Anthropic PBC and OpenAI, with deals committing them to spend over $100 billion on AWS services in the coming years. Amazon's overall revenue increased 17% to $181.5 billion, beating estimates. The company shuttered its Fresh grocery markets and cashierless Go convenience stores during the quarter.
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