Amazon AWS Adds 3.9GW in 2025, Eyes 31GW Capacity by 2027
BofA Securities maintained a $275 price target and Buy rating on Amazon after AWS added 3.9GW of power capacity in 2025, doubling since 2022. The analyst expects AWS capacity to exceed 31GW by end-2027, supporting revenue of $164B in 2026 and $209B in 2027.
1. Analyst Maintains Buy Rating and $275 Target
BofA Securities analyst Justin Post reiterated a Buy rating on Amazon and upheld a $275 price target, highlighting AWS’s aggressive capacity expansion as a catalyst for upside despite near-term AI spending concerns.
2. AWS Capacity Expansion Details
AWS added 3.9 gigawatts of power capacity in 2025, including 1.2GW in the fourth quarter, marking a doubling of capacity since 2022 and laying groundwork to double again by 2027.
3. Revenue Forecast and Upside Potential
By modeling historical capex and AWS commentary, the analyst projects capacity rising from 15GW in Q3 2025 to over 31GW by end-2027, driving AWS revenue to $164B in 2026 and $209B in 2027, representing 2% and 5% upside to consensus.
4. Risks and Sentiment Drivers
Potential headwinds include rising build costs from an estimated $1.2 trillion hyperscaler capex spend over two years, risk of industry overbuild and competitive pricing pressure, though expanded Trainium adoption and new AI capacity deals could boost sentiment.