Amazon.com’s cloud computing unit said on Thursday it plans to invest 1.06 trillion rupees ($13 billion) in India by the end of this decade.
The US tech and e-commerce giant has decided to ramp up its investments, with an eye to securing some of the growing demand for internet services in Asia’s fastest-growing economy.
The announcement comes on top of its $6.5 billion investment in e-commerce in India, where it has rapidly expanded over the years but faces a strict regulatory environment that forces it to run only a marketplace.
The latest investment will be used to build its cloud infrastructure in India and will support over 100,000 full-time jobs annually, Amazon Web Services (AWS) said in its statement. With this, the total planned investment in India adds up to about $16.4 billion by 2030.
Spike in demand for data storage, services
The company already runs two data centres in the Indian subcontinent – one in Mumbai which was launched in 2016, and another in Hyderabad, which started in 2022.
The cloud platform offers more than 200 services, including storage, networking and artificial intelligence.
Amazon’s move comes as India steps up efforts to attract more big-ticket investments in the digital space to address the spike in demand for data storage and services from corporate and government bodies.
India’s public cloud services market is expected to touch $13 billion by 2026, climbing at a compound annual growth rate of 23% for 2021-26, according to market intelligence provider IDC.
A host of global companies, including Microsoft Corp and Alphabet’s Google, have ramped up cloud investments in India in recent years amid New Delhi’s push to gain stricter oversight of Big Tech firms by nudging to store data locally.
The country is currently drafting a cloud and data centre policy to regulate the sector. India’s broader tech sector, too, has attracted high-profile investments in recent months.
US networking equipment maker Cisco Systems earlier this month said it would start manufacturing from India to diversify its global supply chain, while Apple Inc supplier Foxconn will invest $500 million to set up plants in the southern Indian state of Telangana.
- Reuters with additional editing by Jim Pollard