AWS Achieves Strongest Quarterly Growth

(MENAFN) Amazon’s cloud division has recorded its most rapid quarterly revenue expansion in more than three years, fueled by increasing demand for artificial intelligence (AI) and the continued enlargement of its data center infrastructure.

In the first quarter of 2026, Amazon Web Services (AWS) brought in $37.6 billion in revenue, reflecting a 28% rise compared with the same period last year. According to the company on Wednesday, this represents its highest growth pace since the second quarter of 2022.

The cloud segment, which contributes about one-fifth of Amazon’s overall revenue and the majority of its operating profit, has gained significantly from the surging need for AI infrastructure and cloud-based computing services.

Recently, Amazon has strengthened its collaborations with major AI companies OpenAI and Anthropic. These agreements are projected to involve more than $100 billion in future spending on AWS services over the coming years.

These partnerships have helped reduce investor worries about a slowdown in cloud expansion and Amazon’s absence of a leading consumer-facing AI product comparable to OpenAI’s ChatGPT, Anthropic’s Claude, or Google’s Gemini.

Meanwhile, the company’s capital expenditures increased sharply to $44.2 billion during the same quarter, surpassing analyst forecasts, as Amazon continues to heavily invest in data centers and AI-focused infrastructure development.

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