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AWS updated its Service Terms on July 18, 2026 with several operational clarifications and restrictions. For On-Demand Capacity Reservations, the terms now explicitly prohibit resale and reserve the right to cancel or terminate instances if resale is suspected. For Capacity Blocks for ML, the termination window was extended from 30 minutes to 60 minutes for UltraServer instance types. Additionally, AWS renamed its Amazon Sidewalk qualification program from 'Works with Amazon Sidewalk' to 'On Amazon Sidewalk' and simplified related trademark and badge usage requirements.
The updated terms establish new restrictions on how AWS Capacity Reservations may be used. Specifically, customers purchasing On-Demand Capacity Reservations can no longer resell them to other parties, and AWS reserves the right to cancel the purchase or terminate running instances if the company suspects resale activity. For Capacity Blocks for ML, the grace period before instance termination increased from 30 minutes to 60 minutes for UltraServer instance types, allowing slightly more time to complete workloads. The Amazon Sidewalk qualification program was renamed and simplified, but the underlying security and operational requirements remain in effect.
The updated terms establish explicit legal authority for AWS to police and enforce against resale of On-Demand Capacity Reservations, creating operational risk for organizations that may have treated reservations as tradeable assets. Additionally, the differentiated Capacity Block termination window (60 minutes for UltraServer versus 30 minutes for standard instances) affects workload scheduling and orchestration practices for ML customers, requiring updated runbook documentation and automation logic.
→ Review internal procurement policies and cost allocation practices to confirm On-Demand Capacity Reservations are not resold, transferred, or reallocated to third parties.
→ If using Capacity Blocks for ML with UltraServer instance types, update workload orchestration and shutdown procedures to account for the new 60-minute termination grace period.
→ Organizations attempting to resell On-Demand Capacity Reservations may have purchases cancelled or instances terminated by AWS at the company's discretion.
→ ML workloads running on Capacity Blocks with standard instance types will continue to receive 30-minute notice before termination; those using UltraServer types now receive 60 minutes.
ConductAtlas has recorded 10 material changes to this document over 69 days of monitoring (since May 2026). An additional minor or cosmetic changes were excluded.
5 of AWS Bedrock's significant changes have been classified as negative for consumers.
Customers cannot resell Capacity Reservations and AWS may cancel purchases or terminate instances if resale is suspected.
Termination grace period extended to 60 minutes for UltraServer instance types, but remains 30 minutes for standard instance types.
Program renamed from 'Works with Amazon Sidewalk' to 'On Amazon Sidewalk'; badge usage guidelines simplified but security and qualification requirements unchanged.
This change record describes what was added, removed, or modified in the document. Analysis reflects what the updated agreement states or permits. It does not constitute a legal determination about enforceability. Applicability may vary by jurisdiction. Methodology
You cannot resell a Capacity Reservation you bought from AWS to someone else.
AWS can cancel your reservation or shut down your instances if they believe you are trying to resell the capacity.
AWS added two enforcement-related provisions to its Service Terms. First, the terms now explicitly prohibit resale of On-Demand Capacity Reservations and authorize AWS to take corrective action if resale is suspected, including cancellation or instance termination. Second, the Capacity Block termination grace period was differentiated by instance type (30 minutes for standard, 60 minutes for UltraServer), requiring workload planning adjustments. Third, the Amazon Sidewalk program documentation and badge guidelines were renamed and streamlined but substantive qualification and security requirements remain unchanged. Organizations running reserved capacity workloads or Sidewalk-connected devices should review whether these restrictions align with their procurement, resale, or device qualification strategies.
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Analyst $49/moConductAtlas provides verified policy intelligence sourced directly from platform documents. All analysis is intended to support, not replace, legal and compliance review. Record CA-C-003819.
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