Amazon’s AWS expansion could drive potential revenue upside, analysts say

Amazon.com Inc (NASDAQ:AMZN)’s cloud unit, AWS, could see revenue growth above Street expectations thanks to significant capacity expansion, according to Bank of America analysts.

“Based on capex disclosures and AWS commentary, we estimate AWS will add approximately 15 gigawatts of capacity by 2027,” the analysts forecast. They added that this expansion implies “’26/’27 AWS revenue growth potential of 27%/28%, above Street” estimates.

AWS has more than doubled its power capacity since 2022, adding 3.9 gigawatts in 2025 alone, with plans to double capacity again by 2027, the analysts noted.

They also highlighted that recent agreements with OpenAI and the US government suggest Amazon is well positioned to compete for AI-related workloads.

Assuming stable revenue per gigawatt added, Bank of America estimates AWS could generate…