Amazon plans to invest $12.7 billion in cloud infrastructure in India by 2030, the e-commerce group said on Thursday, as it pushes ahead to grow its AWS business in the country’s key overseas market for a time. that it cuts many other expenditures in the region.
The company, which previously invested $3.7 billion for AWS infrastructure in India and now maintains two data center regions in the South Asian market, said its investment will support 131,700 full-time employees. work in roles such as engineering, telecommunications and construction.
The announcement comes as a surprise, with Amazon reinforcing its commitment by doubling down. Last year, the company stated its intention to invest $4.4 billion in AWS for the country by 2030.
Cloud consumption has grown exponentially in India in recent years with companies across sectors adopting it. Amazon’s cloud unit currently leads the market and has amassed many major clients in the country including the Ministry of Electronics and Information Technology, Axis Bank, HDFC Life, BankBazaar, Niti Aayog, PhysicsWallah and Acko.
“Since 2016, AWS has invested billions of dollars into cloud infrastructure in India to support the tremendous growth we are witnessing in the use of the cloud for digital transformation,” said Puneet Chandok, president of commercial business, AWS India and South Asia, in a statement.
“AWS is committed to driving positive social and economic impact in India. In addition to building cloud infrastructure and helping local customers and partners digitally transform, we’ve 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 100% renewable energy goal by 2025. Our planned investment of INR 1,05,600 crores (US $ 12.7 billion) by 2030 will help create more beneficial ripple effects, supporting India on its path to becoming a global digital powerhouse.
India is a key overseas market for Amazon, where it has poured more than $6.5 billion since entering the country’s e-commerce market last decade. Google also has two cloud regions in India while Microsoft maintains three.
The announcement comes amid Amazon closing several businesses in India, prompting many analysts to question whether the American titan is scaling back its presence in the country. Walmart, Amazon’s global rival, also spent more than $2.5 billion in India this year.
“PM Narendra Modi’s Digital India vision is driving the expansion of cloud and data centers in India,” said Rajeev Chandrashekhar, minister of state for electronics and information technology, skill development and entrepreneurship in India. in a statement.
“India’s cloud and underlying data center infrastructure are key elements of India’s digital infrastructure and ecosystem. I welcome Amazon Web Services’ investment of $12.7 billion to expand their data centers in India. This is definitely stimulating India’s digital economy.MeitY is also working on a Cloud & Data Center Policy to catalyze innovation, sustainability, and cloud growth in India.