Amazon's debt nearly doubled to $129 billion in 6 months as CEO Jassy defends $220 billion data center spending spree

August 3, 2026 - 00:31

Amazon's total debt has climbed to roughly $129 billion, nearly doubling within just six months, as the company pours unprecedented amounts of money into data centers and artificial intelligence. The e-commerce and cloud giant spent $53.1 billion on capital projects in the latest quarter alone, and executives now project around $220 billion in total spending for the year.

CEO Andy Jassy is standing by the aggressive outlay, arguing that the company has no choice but to build out its AI capacity at scale. He told analysts that the demand for AI services is real and that falling behind now would be far more costly later. Jassy framed the spending as a once-in-a-generation opportunity, comparing it to the early days of cloud computing when Amazon Web Services made big bets that paid off handsomely.

The debt jump comes from a mix of new bonds and short-term borrowings used to fund construction, chip purchases, and energy contracts for data centers. Amazon's balance sheet still shows strong cash flow, but the rapid increase in leverage has caught some investors' attention. The company's stock has been volatile as Wall Street weighs the potential payoff against the risk of overbuilding.

Jassy acknowledged the scale of the investment is unusual, but he insisted that the company is being disciplined about where the money goes. He said Amazon is prioritizing projects with clear customer demand and measurable returns, rather than speculative bets. Still, the sheer size of the spending plan has raised questions about whether the AI boom can deliver profits fast enough to justify the debt load. For now, Amazon is betting that it can.