AWS to invest $12.7 billion in India’s cloud infrastructure by 2030

Amazon Web Services (AWS) said on Thursday it will invest $12.7 billion (Rs 1.05 lakh crore) in India’s cloud infrastructure by 2030 to meet the growing customer demand for cloud services in India. The investment is expected to support an estimated average of 131,700 full-time equivalent (FTE) jobs in Indian businesses each year.

This will also take AWS’ total investment in India to $16.4 billion by 2030 after having infused $3.7 billion between 2016 and 2022, which supported 39,500 FTE annually in Indian businesses.

AWS’ newly appointed chief executive officer, Adam Selipsky, told ET in an interview that India remains a ”bright spot” amid a period of unprecedented global uncertainty, where businesses are increasingly turning conservative, and that there is significant scope for greater adoption of cloud computing by both Indian businesses and the government.

“We see digital innovation proceeding really rapidly in India. I was just incredibly impressed by the amount of activity I saw when I was there (in April). I know the government is trying to build a trillion-dollar digital economy by 2025, on the way to a $5 trillion economy over the next few years. And, embracing cloud technology is critical for India to realise those ambitions,” he said when asked about the outlook of the Indian market compared with that in the US and Europe.

However, he pointed out that globally, only a small minority of IT spending has moved to the cloud, with early stages of adoption among enterprises and public sector customers in India.

Currently, AWS hosts two of India’s largest digital public infrastructures (DPI) — document storage network DigiLocker and vaccination platform Cowin. AWS has two data centre infrastructure regions in India — AWS Asia Pacific (Mumbai) Region, launched in 2016, and the AWS Asia Pacific (Hyderabad) Region, launched in November 2022.

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Responding to a question on the possibility of exporting digital public goods made out of India, Selipsky said, “The appetite, the willingness, and the ability to export a lot of innovative solutions that are being built in India (is amazing). And you can see their applicability worldwide for the public and private sectors.”Rajeev Chandrashekhar, minister of state for electronics and information technology, said AWS’ investment will “certainly catalyse India’s digital economy and that the IT ministry is also working on a Cloud & Data Center Policy to further innovation, sustainability, and growth of India Cloud”.

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