The Cloud Was Supposed to Be Infinite. Now We Need Reservations
Techstrong.IT, Thursday, October 29th, 2026
Alan Shimel argues AI demand has made cloud capacity something enterprises must reserve, citing AWS saying capacity is booked into 2028.
Techstrong IT's Alan Shimel writes that large-scale AI is changing cloud procurement, as capacity for the biggest deployments may need to be reserved years ahead.
He cites Amazon CEO Andy Jassy saying AWS capacity for 2026 is sold out and much of 2027 and 2028 is committed, though AWS holds capacity back for on-demand customers.
Microsoft expects GPU, CPU and storage constraints through 2026, and neoclouds like Nebius and CoreWeave have large backlogs.
Shimel cautions that backlog is not availability and urges enterprises to fold capacity planning into AI strategy, get specific delivery commitments, understand spending obligations and assess workload portability.