AWS invests US$8.3 billion to boost cloud infrastructure in India
AWS plans to invest US$ 8.3 billion into cloud infrastructure in the AWS Asia-Pacific (Mumbai) Region in Maharashtra, to further expand cloud computing capacity in India.
AWS plans to invest US$8.3 billion in India to develop its cloud infrastructure in the region. With two data center regions already operating in the subcontinent, the new investment is part of an initial US$12.7 billion that AWS announced in 2023 to support India’s growing demand for cloud infrastructure by 2030.
The announcement was made at the World Economic Forum in Davos, whereby the government of Maharashtra in India signed a MoU with AWS to formalize the plans. According to reports, the investment is expected to contribute up to US$15.3 billion to India’s GDP as well as support more than 81,300 jobs in the local data center supply chain by 2030.
According to David Zapolsky, Senior Vice President of Global Public Policy and General Counsel at Amazon, AWS sees tremendous potential for India’s digital economy to thrive for years to come with the growing demand for cloud and artificial intelligence.
“This is why we plan to invest US$ 8.3 billion into cloud infrastructure in Maharashtra by 2030. We are pleased to continue to collaborate with the Maharashtra Government to advance the State’s digital ambitions and democratize access to emerging technology for enterprises, public sector organizations, startups, and small and medium-sized businesses in India,” said Zapolsky.
Meanwhile, Maharashtra Chief Minister Devendra Fadnavis welcomed AWS’s decision to set up its operations in the Mumbai Metropolitan Region.
Calling it a pivotal moment for Maharashtra, the chief minister said, “As we fulfill our vision of becoming a global capital for data centers, this collaboration will not only bolster our state’s technological infrastructure, but also create new opportunities for innovation, economic growth, and job creation.”
Currently, AWS has two data center regions in India. The AWS Asia Pacific (Mumbai) Region was launched in 2016 and provides access to public cloud infrastructure for businesses, startups, and more. The AWS Asia Pacific (Hyderabad) Region was launched in November 2022. AWS has also announced plans to build a hyperscale data center in Hyderabad.
The Indian data center market is one of the fastest growing data center markets in the world. According to statistics from Mordor Intelligence, the data center market in India could reach a value of around US$10 billion in 2025. Driving the growth of the Indian data center market is not the just the increasing internet penetration in the country but also the demand for more compute power as organizations in the country continue to deploy more AI use cases.
AWS currently has thousands of customers that run their workloads on AWS in India. Customers include enterprises such as Axis Bank, HDFC Bank, Bajaj Allianz General Insurance, HDFC Securities, ICICI Lombard as well as from the public sector such as Coal India, Government e-Marketplace, Maharashtra State Electricity Distribution Co. Ltd, PhysicsWallah, WAISL Limited and SMEs.
Supporting AWS presence in the country is its vast partner ecosystem. AWS continues to collaborate closely with many strategic partners as part of the AWS Partner Network (APN) to enable customers in India to innovate and build and scale digital solutions locally and globally. The APN in India includes organizations such as Redington, Crayon Software, Minfy Technologies, Ingram Micro, TCS, PwC, and Deloitte.