New Delhi: Amazon has recently revealed its ambitious plans to invest a staggering $12.7 billion (Rs 1,05,600 crore) in India’s cloud infrastructure by 2030. This announcement demonstrates Amazon’s dedication to expanding its AWS business in the crucial Indian market. Already, the company has invested $3.7 billion in AWS infrastructure in India, establishing two data center regions within the South Asian market. This new investment is projected to contribute to the creation of 131,700 full-time jobs.
Amazon’s intensified commitment to India aims to fortify its position in the country’s cloud market and solidify its dominance. Presently, Amazon’s cloud unit, AWS, leads the cloud market in India and boasts an impressive roster of clients, including prominent names such as Axis Bank, HDFC Bank, Niti Aayog, PhysicsWallah, and Acko. With India experiencing remarkable growth in cloud adoption for digital transformation, Amazon has been consistently investing billions of dollars in cloud infrastructure to support the country’s progress.
As per the reports, Puneet Chandok, the president of commercial business at AWS India and South Asia, stated, “AWS is committed to driving positive social and economic impact in India. In addition to building cloud infrastructure and assisting local customers and partners in their digital transformation, we have trained more than four million people in India with cloud skills since 2017 and invested in six utility-scale renewable energy projects to achieve our global goal of 100 percent renewable energy by 2025. Our planned investment of Rs 1,05,600 crore (US $12.7 billion) by 2030 will generate further beneficial ripple effects, supporting India on its path to becoming a global digital powerhouse.”
India holds strategic significance for Amazon, as the company has already invested over $6.5 billion in the country’s e-commerce market over the past decade. In the cloud market, Amazon faces fierce competition from rivals such as Google, which operates two cloud regions in India, and Microsoft, which maintains three. This intense competition underscores the importance of the Indian market for these tech giants as they vie for supremacy in the rapidly expanding cloud computing industry.
It is important to note that Amazon’s announcement of this substantial cloud investment comes at a time when several businesses in India have closed down, leading some analysts to question whether Amazon was scaling back its presence in the country. However, with this massive capital infusion, Amazon has reaffirmed its commitment to India and its potential for growth in the cloud market. Significantly, Walmart, a global competitor of Amazon, has also been actively investing in India, injecting over $2.5 billion into the country this year.
