Amazon Boosts 2026 Capex to $200 Billion Amid Data Center Surge

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Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

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Summary

Amazon boosted its planned capital spending for 2026 more than 50% to $200 billion, with most of the spend attributed to data centers. It did not break down the investment by geographical location, but Industrial Info is tracking $176 billion worth of active and planned data center projects from Amazon across the U.S.

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Amazon's $200 Billion Capital Spending Plan

In reporting its fourth-quarter and full-year 2025 earnings, Amazon said it boosted capital spending for 2026 by 50% to $200 billion, up from $131 billion in 2025, with most of the spend attributed to data centers. It did not break down the investment by geographical location, but Industrial Info is tracking $176 billion worth of active and planned data center projects from Amazon across the U.S.

"We expect to invest about $200 billion in capital expenditures across Amazon.com, Incorporated, but predominantly in AWS [Amazon Web Services], because we have very high demand," Chief Executive Officer Andy Jassy said in the earnings conference call. "Customers really want AWS for core [non-AI] and AI workloads. And we are monetizing capacity as fast as we can install it. We have deep experience understanding demand signals in the AWS business and then turning that capacity into strong return on invested capital."

The company's fourth-quarter net income reached $21.2 billion, up from $20 billion year-over-year, while full-year income increased to $77 billion from $59.2 billion in 2024.

Fourth-quarter net sales for the company increased 14% to $213.4 billion year-over-year, while full-year sales increased 12% to $176.9 billion. The company offered first-quarter of 2026 guidance of between $173.5 billion and $178.5 billion in net sales.

Fourth-quarter net sales for the AWS segment increased 24% year-over-year to $35.6 billion, while full-year sales increased 20% year-over-year to $128.7 billion.

Chief Financial Officer Brian Olsavsky said, "in 2025, AWS added more data center capacity than any other company in the world."

Amazon is set to add more capacity, especially across the U.S. Of the more than $210 billion worth of active and planned projects from the company being tracked by Industrial Info globally, more than 80% of the spend is attributed to data centers across the U.S.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project and Plant databases can view of a full list of Amazon's U.S. data center projects and the associated data centers.

This includes sprawling sites in Virginia--which hosts more data centers than any other state--such as the seven-building Lake Anna Tech campus and four-building Renaissance Technology Park. Construction on their first buildings is expected to wrap up by the end of the year. Subscribers can view the related project reports.

Other major investment includes at least $10 billion for data center campuses in Canton and Ridgeland, Mississippi; see project reports.

Meanwhile, construction of a $10 billion-plus campus in Indiana could kick off this year, now that the city of Hobart has approved the project's fill permit to move forward with on-site soil grading, according to local media. However, some details are unclear: Amazon told the city it would construct "multiple buildings" or "shells," but did not indicate how many, and a rendering of the site has yet to be released. Subscribers can view the related project reports.

However, pushback to the project is indicative of challenges facing data center construction.

Obstacles to Data Center Construction

The Hobart project has sparked outrage from local residents, according to news media, who say the project was fast tracked without proper input regarding environmental concerns; the company has yet to do a health impact study, an environmental impact study and a noise impact study, among other potential efforts to evaluate impacts.

In addition to environmental concerns, water usage, and perhaps most importantly, rising electricity costs, could throw a wrench in the bourgeoning data center buildout.

However, Amazon and Microsoft, among other technology companies, are addressing ratepayers' concerns head on: the former last year reached an agreement with electricity provider Entergy Mississippi in which the tech giant would cover 100% of the cost to extend power to their new facilities, including Canton and Ridgeland; the latter recently pledged it would ask utilities to set higher electricity rates for its data centers in order to prevent price increases.

For more information, see January 15, 2026, article - Microsoft Plans to Pay More for Data Centers' Power, February 5, 2026, article - IIR North American Outlook: Data Center Buildout Set for Years to Come, and December 8, 2025, article - U.S. Data Center Buildout Hits Obstacles--Speed Bumps or an Iceberg?.

Amazon's E-Commerce

The tech giant has not lost sight of its leading presence in e-commerce.

Amazon's planned $200 billion in capital expenditures for 2026 also includes investment in robotics designed to automate the company's logistics network.

Related project activity includes a $550 million robotics sorting facility in Niagara Falls, New York. Construction of the five-story, 3 million-square-foot facility is expected to wrap up by the end of the year. Subscribers can read more about the project.

Olsavsky said U.S. Prime members received more than 8 billion items the same or next day in 2025--up more than 30% year-over-year.

Amazon's 2026 capital plan also features investment in its satellite network and in-house chips business.

By the Numbers

• $200 billion: Amazon's projected capital investment for 2026
• $77 billion: full-year net income
• $128.7 billion: full-year 2025 net sales increased 20% year-over-year
• $176 billion: value of active and planned data center projects from Amazon across the U.S., according to IIR data

Key Takeaways

• Most of Amazon's 2026 projected capital spend of $200 billion is earmarked for data centers.
• AWS added more data center capacity than any other company in the world in 2025.
• Amazon seeks to mitigate a major obstacle facing the buildout of data centers by preventing electricity price hikes for ratepayers.
• The company also plans to invest in robotics for its logistics network, which is another source of ongoing capital.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resource's Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).