Amazon to invest USD 12.7 billion into cloud infrastructure in India; plans to create over 130,000 jobs

Mumbai: Amazon’s cloud computing unit, Amazon Web Services (AWS) on Thursday (May 18) announced its plans to invest Rs 1,05,600 crore (USD 12.7 billion) into cloud infrastructure in India by 2030. The aim is to meet growing customer demand for cloud services in the country. According to AWS, this investment in data center infrastructure is expected to support an average of 131,700 full-time equivalent (FTE) jobs annually in Indian businesses.

These positions, including construction, facility maintenance, engineering, telecommunications, and other jobs, are part of the data center supply chain in India.

AWS plans to invest USD 12.7 billion

In the statement, AWS said it plans to invest Rs 1,05,600 crore (USD 12.7 billion) into cloud infrastructure in India and added its long-term commitment in India will reach Rs 1,36,500 crore (USD 16.4 billion) by 2030. 

“Amazon Web Services (AWS) announced it plans to invest INR 1,05,600 crores (US $12.7 billion) into cloud infrastructure in India by 2030 to meet growing customer demand for cloud services in India,” it said in a statement. 

This follows AWS’ investment of Rs 30,900 crore (USD 3.7 billion) between 2016 and 2022, which will bring AWS’ total investment in India to Rs 1,36,500 crore (USD 16.4 billion) by 2030.

“AWS’s investment in India has a ripple effect in the local economy in areas, such as workforce development, training and skilling opportunities, community engagement, and sustainability initiatives,” it said.

It said that this investment is estimated to contribute INR 1,94,700 crores (US $23.3 billion) to India’s total gross domestic product (GDP) by 2030. 

AWS has two data centre infrastructure regions in India — the AWS Asia Pacific (Mumbai) Region, launched in 2016, and the AWS Asia Pacific (Hyderabad) Region, launched in November 2022. “The two AWS Regions are designed to provide Indian customers with multiple options to run workloads with even greater resilience and availability, securely store data in India, and serve end-users with low latency,” it said.

AWS has invested over Rs 30,900 crore

AWS has invested more than Rs 30,900 crore in the AWS Asia Pacific (Mumbai) Region between 2016 and 2022. This included both capital and operating expenditures associated with constructing, maintaining, and operating the data centres in that region.

Its overall contribution to the GDP of India between 2016 and 2022 was more than Rs 38,200 crore (USD 4. 6 billion), and the investment supported nearly 39,500 FTE jobs annually in Indian businesses, AWS estimates.

India welcomes AWS investment 

Rajeev Chandrashekhar, minister of state for electronics and information technology, skill development and entrepreneurship in India, said “PM Narendra Modi’s Digital India vision is driving expansion of cloud & data centers in India.” 

“India Cloud and the underlying data center infrastructure are important elements of India’s digital infrastructure and ecosystem. I welcome the Amazon Web Services (AWS) investment of $12.7 billion to expand their data centers in India. It will certainly catalyze India’s digital economy. MeitY is also working on a Cloud & Data Center Policy to catalyze innovation, sustainability, and growth of India Cloud,” he added.

Puneet Chandok, president of commercial business – AWS India and South Asia at Amazon Web Services India, said the planned investment of Rs 1,05,600 crore by 2030 will “help create more beneficial ripple effects, supporting India on its path to becoming a global digital powerhouse.”

AWS observed that hundreds of thousands of its customers in India run their workloads on AWS to drive cost savings, accelerate innovation, and increase speed time to market.

This includes government entities such as Ministry of Electronics and Information Technology, public healthcare institutions like Aarogyasri Health Care Trust, large Indian enterprises such as Ashok Leyland, Axis Bank, HDFC Life and Titan, small and medium businesses like Havmor, Qube Cinema, and Narayana Nethralaya, and startups like BankBazaar, HirePro, M2P, and Yubi, among others.

AWS also helps several Indian businesses build digital solutions locally that can be scaled globally through the AWS Partner Network (APN) where Indian partners can use programmes, expertise, and resources to build, market, and sell customer offerings. The APN in India includes organisations, such as Minfy Technologies, Rapyder Cloud Solutions, and Redington, it said.

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