Amazon Makes Major Investment in India
Amazon (AMZN) is planning a significant investment of approximately $8.2 billion in India over the coming years. This move is driven by the increasing global adoption of cloud services and the growing opportunities within the Indian market.
Bolstering AWS Infrastructure
The investment will be channeled through Amazon Web Services (AWS) and will be deployed in the western Indian state of Maharashtra. According to India’s Minister of Electronics and Information Technology, Ashwini Vaishnaw, the development is expected to be completed by 2029-2030.
Under the terms of the agreement, Amazon will incorporate its own graphics processing units, the most recent technologies, and cloud management services within India. The primary objective is to bolster the AWS infrastructure in the country.
Currently, Amazon operates two data centers in India that allow for AWS services. The first one was launched in Mumbai in 2016, and the second one was launched in Hyderabad in 2022.
Last year, Amazon revealed its plans to invest an additional $2 billion in India to expand its e-commerce operations.
India’s Growing AI City
Vaishnaw also announced that the company intends to create advanced computing facilities and cloud management services. This is particularly significant because India has increased its efforts to promote local cloud data storage.
According to a report from the International Data Corporation, the cloud services market in India, valued at $8.3 billion in 2023, is projected to reach $24.2 billion by 2028. This expansion is supported by a thriving economy, with the International Monetary Fund forecasting a 6.5% growth in 2025/26. Additionally, the country’s expanding digital economy, a youthful population, and a rapid increase in technology adoption across various sectors are contributing factors.
Maharashtra is playing a key role in this economic advancement, with initiatives to develop an AI-powered ‘Innovation City’ in Navi Mumbai. The goal is to attract tech companies and startups to the region.
