Amazon’s 2026 capital expenditures are being driven primarily by AWS’s accelerated AI infrastructure buildout amid demand that continues to exceed available capacity. Management raised full-year guidance to approximately $220 billion in late July, up from the $200 billion figure set in February, citing higher memory costs while noting that even this level would leave the company short of meeting contracted customer needs through 2027. Quarterly cash capex reached $53–54 billion in Q2 alone, contributing to a trailing twelve-month total near $173 billion and turning free cash flow negative. AWS revenue grew 37% year-over-year to $42.2 billion with a $496 billion backlog, supporting management’s view that server and data-center investments generate strong returns once monetized. Q3 earnings and any further guidance updates remain key near-term catalysts for assessing whether spending will track or exceed the revised target.