Amazon Increases EC2 Chip Rental Rates by 15% Alongside $8B Financing Plan

Amazon is raising prices for its EC2 Capacity Blocks by approximately 15%, effective October 7, 2026, as the company manages the capital intensity of its AI infrastructure expansion. The price hike applies to Nvidia hardware ranging from A100 to B300 models, reflecting an effort to offset the costs associated with building out data centers.

Alongside the price increases, Amazon is reportedly exploring an $8 billion off-balance-sheet financing deal. This arrangement would involve shifting Nvidia processors into a special-purpose vehicle (SPV) and leasing them back, a strategy that would include debt issuance and up to a 10% equity stake for outside investors.

"We will still not have enough capacity to meet all the demand we have in 2026. And I believe this dynamic will also be true in 2027 too. In fact, the demand we already have for 2028 is striking," said Andy Jassy, CEO of Amazon, in a statement regarding the company's infrastructure outlook.

Financial Pressure and Capital Intensity

The move comes as Amazon faces a shift in its financial profile. According to a recent report, the company’s trailing-12-month free cash flow has moved to negative $7.6 billion, a reversal from the positive $18.2 billion reported one year ago. Planned capital expenditure for 2026 is currently estimated at $220 billion, highlighting the investment required to maintain AI capacity.

How Off-Balance-Sheet Financing Works

By utilizing an SPV, Amazon can move capital-heavy assets, specifically high-performance Nvidia processors, off its primary balance sheet. This mechanism allows the firm to procure hardware without immediately burdening its own debt ratios or exhausting cash reserves. In a typical lease-back arrangement, the SPV purchases the equipment using a combination of debt and equity, then leases the hardware back to the operator. This provides the operator with access to the technology while spreading the financial obligation over the useful life of the assets.

Implications for Cloud Customers

The 15% price increase for EC2 Capacity Blocks directly impacts the cost structure for enterprises training and deploying large-scale AI models on AWS. As hyperscalers secure supply from chip manufacturers, the costs of maintaining these clusters are being passed down to end-users. With demand projected to outstrip supply through 2028, the current pricing adjustment shows the premium organizations are willing to pay for access to high-performance computing resources.