By the end of this decade, Amazon Inc’s cloud computing division will spend $13 billion in India, doubling on its previous investments to meet the rising demand for such services in a country that is one of Asia’s fastest-growing nations.
However, this is in addition to Amazon’s $6.5 billion investment in India’s e-commerce, which it has held as its stronghold but the Indian regulations have restricted it to operate only a marketplace.
Amazon Web Services (AWS) stated in a statement on Thursday that the most recent investment will be used to enhance its cloud infrastructure in India and will support over 100,000 full-time employments annually. By 2030, the sum of all planned investments in India will be roughly $16.4 billion.
In the Indian subcontinent, the business already has two data centres: one in Mumbai, which opened in 2016, and another in Hyderabad, which opened in 2022. More than 200 services, including storage, networking, and artificial intelligence, are available on the cloud platform.
The decision by Amazon comes as India intensifies its efforts to lure more significant investments into the digital sector in order to meet the rising demand from businesses and the government for data storage and related services.
According to market research firm IDC, the market for public cloud services in India is anticipated to reach $13 billion by 2026, growing at a compound annual growth rate of 23.1% from 2021-26.
In recent years, a number of multinational corporations, including Microsoft Corp. and Google of Alphabet Inc., have increased their cloud investments in India in response to New Delhi’s demand for greater regulation of Big Tech companies by encouraging them to store data locally.