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

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Amazon plans to invest $12.7 billion in its cloud infrastructure in India by 2030, the e-commerce group said on Thursday, as it moves to expand its AWS business in key overseas markets at a time when it has cut several other spending in the region.

The company, which previously invested $3.7bn for AWS infrastructure in India and currently maintains two data center regions in the South Asian market, said its spending will support 131,700 full-time jobs in roles like engineering, telecommunications and construction.

The announcement comes as a surprise, with Amazon reinforcing its commitment by doubling down on its bet. Last year, the company had stated its intention to invest $4.4 billion in AWS for the country by 2030.

Cloud consumption has grown significantly in India in recent years and businesses across all sectors have embraced it. Amazon’s cloud unit currently leads the market and has amassed several 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 in cloud infrastructure in India to support the tremendous growth we have seen in the use of cloud for digital transformation,” said Puneet Chandok, president of commercial business, AWS India and South Asia, in a statement.

“AWS is committed to creating a positive social and economic impact in India. In addition to building cloud infrastructure and helping local customers and partners digitally transform, 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 meet our global goal of 100% renewable energy. 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 foreign market for Amazon, where it has invested more than $6.5 billion since entering the country’s e-commerce market in the last decade. Google also has two cloud regions in India, while Microsoft maintains three.

The announcement comes amid the closure of numerous Amazon stores in India, prompting several analysts to question whether the American titan was reduce its presence in the country. Walmart, Amazon’s global rival, has also spent over $2.5 billion in India this year.

“Prime Minister Narendra Modi’s Digital India vision is driving the expansion of cloud and data centers in India,” said Rajeev Chandrashekhar, India’s minister of state for electronics and information technology, skills development and entrepreneurship. , it’s a statement.

“India’s cloud and underlying data center infrastructure are important elements of India’s digital ecosystem and infrastructure. I welcome Amazon Web Services’ investment of $12.7 billion to expand its data centers in India. It will undoubtedly catalyze India’s digital economy. MeitY is also working on a cloud and data center policy to catalyze cloud innovation, sustainability and growth in India.”