Amazon targets India’s cloud market, planning to invest a whopping $13 billion!

Amazon to invest $13 billion in India's cloud market

According to foreign media reports, Amazon announced on Thursday that it plans to spend $13 billion to expand its cloud infrastructure in India by 2030 in order to meet the country’s growing demand for cloud services. This is the company’s largest investment in the South Asian market since it began operations in 2013.

In a statement on Thursday, Amazon Web Services (AWS) said that the latest investment plan will provide about 131,700 full-time jobs per year for India’s data center supply chain, involving roles in engineering, communications, and construction.

From 2016 to 2022, AWS has invested $3.7 billion in India. Currently, AWS operates two data centers in the country, located in Mumbai (launched in 2016) and Hyderabad (launched in 2022).

India is the world’s second-largest internet market, and the adoption rate of cloud computing in various industries has surged in recent years, leading to strong growth in the country’s cloud market. Currently, Amazon dominates the cloud market in India and has a range of high-profile customers, such as the Indian Ministry of Electronics and Information Technology, Axis Bank, HDFC Life, BankBazaar, Niti Aayog, PhysicsWallah, and Acco.

Google, which has two cloud centers in India, and Microsoft, which has three, have also expanded their cloud businesses in the country in recent years. According to research firm IDC, India’s public cloud services market will reach $13 billion by 2026, with a compound annual growth rate of 23.1% from 2021 to 2026.

AWS is committed to promoting positive social and economic impact in India. “In addition to building cloud infrastructure and helping local customers and partners digitize, since 2017, AWS has also trained more than 4 million people in India to master cloud skills and invested in six utility-scale renewable energy projects,” said the head of AWS India and South Asia in a statement.

He added that the investment in AWS will help create “more favorable multiplier effects and support India’s progress towards becoming a global digital power.”

BusinessDialogue learned that India has always been a major overseas market for Amazon, with the company investing over $6.5 billion in the country’s e-commerce business over the past decade. In addition, Amazon’s competitor Walmart has also invested more than $2.5 billion in India this year.

Editor: Nicole/AMZ123

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