AWS to expand India data centers with $7b Telangana project
- ByStartupStory | December 16, 2025
Amazon Web Services is set to significantly deepen its footprint in India by investing $7 billion over the next 14 years to expand its data centre infrastructure in Telangana, cementing Hyderabad’s status as one of the country’s leading cloud hubs. The long-term commitment is part of a strategic framework agreement signed between AWS and the Telangana government during the Telangana Rising Global Summit 2025, and builds on earlier pledges and ongoing projects in the state.
Under the agreement, AWS will expand capacity in its existing Asia Pacific (Hyderabad) Region through new hyperscale data centre campuses, adding compute, storage, and networking resources to support a growing range of cloud and AI workloads. The state government, in turn, has promised extensive facilitation measures, including land allocation, power and connectivity support, and ease-of-doing-business interventions to help AWS ramp up construction and operations quickly.
Telangana Chief Minister A. Revanth Reddy has framed the deal as a vote of confidence in the state’s governance and its “Telangana Rising 2047” digital vision, noting that the project is expected to create thousands of direct and indirect jobs, boost ancillary industries, and attract more technology investment to the region. State IT and Industries Minister D. Sridhar Babu has described the expansion as a key step in establishing Hyderabad as India’s “data centre capital” and a core node in the country’s AI and cloud infrastructure.
For AWS, the new $7 billion expansion builds on earlier announcements, including a previously stated plan to invest $4.4 billion in Telangana by 2030 and about $1 billion already deployed across three operational sites in the state. The additional capital will support not just traditional enterprise cloud services but also advanced AI and machine learning platforms, startup ecosystems, and digital government workloads that rely on high-availability, low-latency infrastructure.
The project aligns with India’s broader digital economy and AI ambitions, giving local startups, enterprises, and public sector entities greater access to domestic cloud capacity that can help address data residency needs and reduce reliance on overseas infrastructure. As global cloud majors race to secure capacity for AI-era demand, AWS’s Telangana bet underscores both the centrality of India in its Asia-Pacific strategy and the emergence of state-level partnerships as a critical lever for large-scale digital infrastructure buildout.
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