Amazon (AMZN) is set to invest approximately $8.2 billion in India over the coming years, responding to the increasing global embrace of cloud services. This substantial commitment underscores the company’s strategic focus on the Indian market and the rapid expansion of cloud technology.
AWS Infrastructure Expansion
The investment will be channeled through Amazon Web Services (AWS), the company’s cloud computing division, and will be primarily deployed in the western Indian state of Maharashtra. According to Ashwini Vaishnaw, India’s Minister of Electronics and Information Technology, the investment is slated to be completed by 2029-2030. This initiative involves the deployment of Amazon’s proprietary graphics processing units (GPUs), cutting-edge technologies, and advanced cloud management services within India. The goal is to significantly enhance AWS’s infrastructure in the region.
Currently, Amazon operates two data centers in India: one in Mumbai, which began operations in 2016, and another in Hyderabad, launched in 2022.
Last year, Amazon announced an additional $2 billion investment aimed at strengthening its e-commerce operations in India.
India’s Growing Digital Economy
Minister Vaishnaw also noted that Amazon intends to establish state-of-the-art computing facilities and cloud management services. This is particularly noteworthy as India intensifies its efforts to establish domestic cloud data storage capabilities.
According to a report by International Data Corporation, the Indian cloud services market, valued at $8.3 billion in 2023, is projected to reach $24.2 billion by 2028. This growth is fueled by a strong economic environment, with the International Monetary Fund forecasting a 6.5% expansion in 2025/26. Additional contributing factors include a thriving digital economy, a young and tech-savvy population, and accelerating technology adoption across numerous sectors.
Maharashtra is poised to play a pivotal role in this growth, with plans underway for the development of an AI-powered ‘Innovation City’ in Navi Mumbai. The aim is to attract a burgeoning ecosystem of tech firms and startups to the area.
