Amazon announced on Thursday that it will invest $12.7 billion into its cloud business in India by 2030 as it works to expand the AWS infrastructure in the important international market while cutting back on a number of other offerings there.
The American company, which has previously spent $3.7 billion on AWS infrastructure in India and now runs two data center regions in the South Asian market, said that its investments will support 131,700 full-time jobs in industries including engineering, telecommunications, and construction.
Significant Expansion of the Business
The announcement made on Thursday represents a significant expansion of AWS’s first approach. The cloud computing behemoth had already declared its intention to invest $4.4 billion through AWS in the South Asian economy. India, the second-largest internet market in the world, has seen a significant uptick in cloud usage over the past several years across a variety of industries, reflecting the sector’s steady expansion.
With a clientele that includes the Indian Ministry of Electronics and Information Technology, Axis Bank, HDFC Life, BankBazaar, Niti Aayog, PhysicsWallah, and Acko, Amazon’s cloud division commands a dominating position in the market.
In recent years, both Microsoft, which maintains three cloud regions in India, and Google, which has two cloud regions there as well, have grown their cloud businesses there. According to market analyst IDC, the whole public cloud services market in India is anticipated to grow to $13 billion by 2026.
AWS to invest $12.7 billion in India
Investing in Renewable Energy Projects
“AWS is dedicated to promoting India’s social and economic impact. “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 100% renewable energy goal by 2025, in addition to building cloud infrastructure and assisting local clients and partners in digital transformation,” said Puneet Chandok, president of commercial business at AWS India and South Asia, in a statement.
He continued by saying that the upcoming AWS investment will contribute to “more positive ripple effects, supporting India on its path to becoming a global digital powerhouse.”
Amazon has invested more than $6.5 billion in India’s e-commerce over the course of the last ten years, making it one of its primary international markets. The reduction by three