Amazon Web Services to invest $12.7 billion in India

On Thursday, Amazon Web Services (AWS) announced intentions to invest USD 12.7 billion in India’s cloud infrastructure. The corporation made this decision in order to accommodate the nation’s rising demand for cloud services.

The proposed investment in Indian data centre infrastructure would, according to the company’s official statement, support an expected average of 1,31,700 full-time equivalent (FTE) employment in Indian companies per year. The Indian data centre supply chain includes occupations in building, facilities maintenance, engineering, telecommunications, and other fields.

Reportedly, the US company has already invested over USD 3.7 billion in its data centres in Mumbai and Hyderabad from 2016 to 2022. The fesh outlay will include spending construction, server computers and telecommunications infrastructures.

Reportedly, India is the world’s second largest internet market, which has witnessed a considerable surge in cloud adoption across various industries in recent years, reflecting the sector’s robust growth. Amazon’s cloud division holds a dominant position within the market, boasting a roster of prominent customers such as the Indian Ministry of Electronics and Information Technology, Axis Bank, HDFC Life, BankBazaar, Niti Aayog, PhysicsWallah, and Acko.

According to Rajeev Chandrashekhar, India’s minister of state for electronics and information technology, skill development, and entrepreneurship, “PM Narendra Modi’s Digital India vision is driving expansion of cloud and data centres in India.” “India’s digital ecosystem and infrastructure, including the underpinning data centre architecture, are crucial. I applaud Amazon Web Services’ USD 12.7 billion investment in expanding its data centres in India. The digital economy in India will undoubtedly be boosted by it. A Cloud and Data Centre Policy is another project MeitY is working on to spur India’s cloud industry’s innovation, sustainability, and expansion,” he added.

Noteworthy, that all the global tech companies from Apple Inc. to Netflix Inc. are expanding in the world’s most populous country with services such as video streaming and online retailing, while Wall Street banks and global insurers have long operated tech centres in the country. Such businesses are accelerating the growth of India’s cloud-services market, which researcher IDC sees growing at an average rate of 23 percent a year to reach USD 13 billion in 2026.