AWS to Invest $12.7B in Cloud Infrastructure in India

• ByStartupStory     |    May 18, 2023

Amazon Web Services (AWS), the cloud computing unit of the ecommerce giant, has announced its plans to invest $12.7 billion (Rs 1,05,600 crore) in India’s cloud infrastructure by 2030. This investment aims to meet the growing consumer demand for cloud services in the country. Including its existing investment of $3.7 billion from 2016 to 2022, AWS’ total investment in India will reach $16.4 billion. As part of its expansion, AWS has already launched two data centre infrastructure regions in Mumbai and Hyderabad.

“Since 2016, AWS has invested billions of dollars into cloud infrastructure in India to support the tremendous growth we have witnessed in the use of cloud for digital transformation,” Puneet Chandok, President of Commercial Business, AWS India and South Asia, said in a statement. “AWS is committed to driving positive social and economic impact in India.”

The investment of Amazon Web Services (AWS) in India’s cloud infrastructure is projected to contribute approximately $23.3 billion to the country’s gross domestic product (GDP) by 2030. Additionally, this investment is anticipated to support around 131,700 full-time equivalent jobs in Indian firms each year.

In recent years, there has been a significant rise in cloud adoption among companies of all sizes and across diverse sectors in India. As the largest player in the cloud computing industry, AWS has garnered an impressive client base in the country. Notable customers of AWS include the Ministry of Electronics and Information Technology, Aarogyasri Health Care Trust, Ashok Leyland, Axis Bank, HDFC Life, and Titan.

“India Cloud and the underlying data centre infrastructure are important elements of India’s digital infrastructure and ecosystem,” Rajeev Chandrashekhar, Minister of State for Electronics and IT, Skill Development and Entrepreneurship, said, adding that AWS’s investment will catalyse India’s digital economy. 

AWS’s intention to increase its investment in India coincides with MeitY’s efforts to develop a Cloud & Data Centre Policy that aims to boost innovation, sustainability, and the growth of India’s cloud industry. This move by AWS follows a recent decline in sales for the company over the past five quarters, as businesses worldwide reevaluate their cloud spending in response to challenging economic circumstances.

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