Amazon’s cloud infrastructure service, Amazon Web Services (AWS), is poised for its strongest growth year in three years, driven by unprecedented demand for computing power from the AI industry.

Figure 1. AWS Beats Wall Street Expectations as Cloud Demand Soars.

AWS is growing 20% year-over-year, ending the third quarter with $33.1 billion in sales through the first nine months of the year, Amazon reported in its third-quarter earnings release on Thursday. The segment’s operating income rose to $11.4 billion in Q3, up from $10.4 billion during the same period in 2024. Figure 1 shows AWS Beats Wall Street Expectations as Cloud Demand Soars.

“AWS is growing at a pace we haven’t seen since 2022, re-accelerating to 20.2% YoY,” said Andy Jassy, Amazon’s president and CEO, in the earnings announcement. “We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity — adding more than 3.8 gigawatts over the past 12 months.”

During the quarter, AWS launched a new infrastructure region in New Zealand and has three additional regions in the pipeline.

The cloud provider also secured several new deals across multiple industries, including notable names in the AI sector. In July, AWS partnered with Perplexity to launch the AI browser company’s enterprise product. It also formed a partnership with Cursor in the third quarter.

The surging demand for AI infrastructure has benefitted AWS’s competitors as well. In September, OpenAI and Oracle reportedly signed a massive $300 billion cloud compute deal starting in 2027, with OpenAI paying Oracle $30 billion annually for data center services. Last week, Google and Anthropic announced a cloud agreement worth ten of billions of dollars.

These enormous deals come amid ongoing skepticism about the long-term need for cloud infrastructure and concerns over potential market bubbles. Still, it makes strategic sense for cloud providers like AWS to capitalize on a market where customers are willing to pay premium prices for computing power.

Andy Jassy emphasized Amazon’s commitment to expanding its AI infrastructure, stating that the company will remain aggressive in investing in capacity to meet growing demand.

AWS Growth Soars

This part would focus on the numbers behind AWS’s success:

• AWS grew 20% year-over-year, reaching $33.1 billion in sales through the first nine months of the year.
• Operating income climbed to $11.4 billion, up from $10.4 billion last year.
• Highlight CEO Andy Jassy’s statement about re-accelerated growth and the company’s strong performance.

AI Fuels Cloud Demand

This section would explain why AWS is growing so fast:

• The AI boom is driving unprecedented demand for cloud computing power.
• AWS has been expanding capacity aggressively, adding 3.8 gigawatts in the past 12 months.
• New regions like New Zealand are coming online, with more in the pipeline.
• Partnerships with AI companies like Perplexity and Cursor show the direct link between AI and AWS growth.

Source: TC

Cite this article:

Priyadharshini S (2025), AWS Surpasses Wall Street Forecasts Amid Strong Demand for Cloud Infrastructure, AnaTechMaz, pp.173