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Amazon plans to invest $12.7 billion in its cloud business in India by 2030, the e-commerce group said Thursday, as it continues to scale AWS infrastructure in the market. key foreigner at a time when he cut several other services in the region.
The US giant, which previously invested $3.7 billion in AWS infra in India and currently operates two data center regions in the South Asian market, said its spending would support 131,700 full-time jobs in roles such as engineering, telecommunications and construction.
Thursday’s announcement is a notable escalation in AWS’ initial strategy. The cloud giant previously said it would invest $4.4 billion on AWS in the South Asian economy.
India, the second largest internet market in the world, has seen a tremendous increase in cloud adoption across various industries in recent years, reflecting the robust growth of the sector. Amazon’s cloud division has a dominant position in the market, with a list of prominent customers such as India’s Ministry of Electronics and Information Technology, Axis Bank, HDFC Life, BankBazaar, Niti Aayog, PhysicsWallah and Acko.
Google, which also has two cloud regions in India, and Microsoft, which operates three, have also expanded their cloud operations in the country in recent years. The overall market for public cloud services in India is expected to reach $13 billion by 2026, according to researcher IDC.
“AWS is committed to generating positive social and economic impact in India. In addition to building cloud infrastructure and helping local customers and partners digitally transform, we’ve trained more than four million people in India with cloud skills since 2017 and invested in six large-scale renewable energy projects. to achieve our global goal of 100% renewable energy. by 2025,” Puneet Chandok, president of business affairs at AWS India and South Asia, said in a statement.
The planned AWS investment will help create “more beneficial ripple effects, supporting India on its way to becoming a global digital powerhouse,” he added.
India is a key overseas market for Amazon, where it has invested more than $6.5 billion in the country’s e-commerce over the past decade. The tripling of AWS investment also exceeds the company’s spending and commitment to its flagship e-commerce business.
The announcement also comes as Amazon is closing many businesses in India, a move that has prompted several analysts to question whether the US giant is reducing its presence in the country. Walmart, Amazon’s global rival, has also spent more than $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, Minister of State for Electronics and Information Technology, at the skills development and entrepreneurship in India, in a statement.
“The Indian cloud and the underlying data center infrastructure are important parts of India’s digital infrastructure and ecosystem. I welcome Amazon Web Services’ 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 and data center policy to catalyze Indian cloud innovation, sustainability and growth.