Amazon’s Data Center Expansion Fuels Bullish 2026 Outlook for AMZN Stock
Amazon's $125 billion capital expenditure in 2025, heavily weighted toward AWS infrastructure, sets the stage for a transformative 2026. The company's data center pipeline—including a $7 billion Hyderabad project and $15 billion Indiana facilities—positions it to dominate the AI-driven cloud race against Microsoft Azure and Google Cloud.
Analysts highlight AWS margins as the key growth lever, with warehouse automation and AI data centers accelerating efficiency. Guggenheim notes additional catalysts beyond AI, though competitive pressures loom.