Amazon Plans $12.7B Investment in India for AWS Expansion

US e-commerce giant Inc. on Thursday announced plans to make a ₹1.06 trillion ($12.7 billion) investment in India by 2030 as it proceeds with expanding the Amazon Web Services (AWS) infrastructure in the country to meet higher demand for cloud computing services.

AWS stated that spending is intended for setting up its cloud infrastructure in the South Asian market and is expected to support 131,700 full-time jobs per year, including roles in engineering, telecommunications, and construction.

Between 2016 and 2022, Seattle-based Amazon invested $3.7 billion in the infrastructure of its cloud computing unit in India. It is also currently operating two data center regions in the country, one in Mumbai and one in Hyderabad, which was launched in 2016 and 2022, respectively.

Overall, the company’s planned cloud investment in one of Asia’s fastest-growing economies amounts to $16.4 billion by the end of this decade.

Maximizing India’s Cloud Computing Potential

Amazon’s latest move shows a step up in AWS’s original plan. The tech behemoth previously said it looks to invest $4.4 billion in its cloud business in India.

In recent years, cloud adoption in the world’s second-largest internet market has increased significantly across industries, demonstrating the sector’s solid growth.

Furthermore, India has intensified efforts to secure major investments in the digital space, where higher demand for data storage and services from corporations and the government has been observed.

A US-based market intelligence provider stated that the country’s public cloud services market is expected to hit $13 billion by 2026, rising at a 23.1% compound annual growth rate from 2021 to 2026.

India has become a crucial overseas market for Amazon. Over the years, its e-commerce investment in the country has reached $6.5 billion, and the company has seen rapid growth. However, strict regulations have limited it to only maintaining a marketplace.

Other tech giants, including Microsoft Corp. and Alphabet Inc.’s Google LLC, have also put more into India’s cloud computing market in recent years amid New Delhi’s efforts to implement tighter supervision on Big Tech firms by requesting local data storage.

India is currently creating a draft for a cloud and data center policy to oversee the sector.

User Review
0 (0 votes)


Leave a Reply