Amazon Web Services (AWS), the cloud computing division of Amazon, is set to invest approximately $8.2 billion in the western Indian state of Maharashtra over the coming years, as confirmed by the Ministry of Electronics and Information Technology on Monday.
This significant financial commitment aligns with India’s broader strategy to boost local cloud data storage in a rapidly expanding market. According to a report by International Data Corporation, India’s cloud services market, valued at $8.3 billion in 2023, is projected to reach $24.2 billion by 2028.
“Along with this investment, we anticipate substantial employment growth,” stated Ashwini Vaishnaw, the Minister of Electronics and Information Technology. He added that the investment will be implemented between 2029 and 2030.
Vaishnaw also revealed that Amazon will introduce its own graphics processing units, the latest technologies, and cloud management services in India as part of this ambitious expansion plan. Currently, the e-commerce giant operates two data centers in India: one in Mumbai, which commenced operations in 2016, and another in Hyderabad, which began operation in 2022.
This announcement follows Amazon’s prior commitment last year to invest an additional $2 billion in India to bolster its e-commerce operations. At the annual Smbhav event in December 2024, Samir Kumar, Amazon India’s country manager, outlined the company’s goal to “digitize 10 million small businesses” and noted that Amazon has “enabled over 12 million small businesses to become a part of the digital economy.”
The AWS investment is anticipated to strengthen Maharashtra’s standing as a key technology hub. This announcement follows shortly after Maharashtra’s Chief Minister, Devendra Fadnavis, disclosed that Tata Sons will be responsible for developing the master plan for Maharashtra’s AI-powered ‘Innovation City.’
This development is part of a broader trend of technology companies increasing their investments in India. Earlier this year, Microsoft announced a $3 billion investment over the next two years to strengthen India’s AI and cloud infrastructure, as well as various skilling initiatives.
