Amazon's cloud computing division, Amazon Web Services (AWS), plans to invest $13 billion in India by 2030 to meet the increasing demand for cloud services in one of Asia's rapidly growing economies, in addition to its previous $6.5 billion investment in the country's e-commerce sector, where it operates as a marketplace due to strict regulations.
Amazon Web Services has announced that its latest investment of $13 billion in India will be utilized to develop its cloud infrastructure, creating over 100,000 full-time jobs annually. The planned investment, which brings the total to approximately $16.4 billion by 2030, will support AWS in expanding its services in India. Currently, AWS operates two data centers in India, located in Mumbai and Hyderabad, and offers a wide range of services including storage, networking, and artificial intelligence.
As India aims to attract more major investments in the digital sector, Amazon's recent move aligns with the increased demand for data storage and services from corporate and government entities. The Indian public cloud services market is projected to reach $13 billion by 2026, growing at a compound annual growth rate of 23.1% from 2021 to 2026, according to IDC. Companies like Microsoft and Google have also intensified their cloud investments in India, driven by the government's push for local data storage.
India is currently formulating a policy to regulate the cloud and data center industry. Additionally, prominent investments have been made in India's broader tech sector, including Cisco Systems' decision to manufacture in the country and Foxconn's $500 million investment in setting up plants in Telangana, a southern Indian state.