Amazon commits Rs 1,05,600 crore to boost cloud infrastructure in India by 2030

Amazon has unveiled plans to invest a whopping $12.7 billion (Rs 1,05,600 crore) in India's cloud infrastructure by 2030, reaffirming its commitment to scaling up its AWS business in the key overseas market. This move comes at a time when the company has been reducing its expenditures in the region. Previously, Amazon had invested $3.7 billion in AWS infrastructure in India, establishing two data centre regions in the South Asian market. The latest investment is expected to support the creation of 131,700 full-time jobs.

The company is doubling down on its commitment to India. Just last year, Amazon expressed its intention to invest $4.4 billion in AWS for the country. With this substantial infusion of capital, Amazon aims to strengthen its position in India's cloud market and further solidify its dominance.

Amazon's cloud unit, AWS, currently leads the cloud market in India and boasts an impressive clientele that includes prominent names such as Axis Bank, HDFC Bank, Niti Aayog, PhysicsWallah, and Acko. The company has been steadily investing in cloud infrastructure in India since 2016, channelling billions of dollars to support the country's remarkable growth in cloud adoption for digital transformation.

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Puneet Chandok, the president of commercial business at AWS India and South Asia, told TechCrunch in a statement, "AWS is committed to driving 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 100 per cent renewable energy goal by 2025. Our planned investment of Rs 1,05,600 crore (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 holds strategic importance for Amazon, as it has invested over $6.5 billion in the country's e-commerce market over the past decade. In the cloud market, Google also operates two cloud regions in India, while Microsoft maintains three. This intense competition underscores the significance of the Indian market for these tech giants, as they vie for dominance in the rapidly growing cloud computing industry.

Interestingly, Amazon's announcement of its massive cloud investment comes amidst the closure of several businesses in India, leading some analysts to question whether the company was scaling back its presence in the country. Notably, Walmart, a global rival of Amazon, has also been actively investing in India, having injected over $2.5 billion into the country this year.

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