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AWS To Invest $12.7 Billion Into Cloud Infrastructure In India

This investment is estimated to contribute $23.3 billion to India’s total gross domestic product (GDP) by 2030

AWS To Invest $12.7 Billion Into Cloud Infrastructure In India
POSTED ON May 18, 2023 10:01 AM

Amazon Web Services (AWS) is all set to invest $12.7 billion into cloud infrastructure in India by 2030 to meet the customer demand for cloud services in India. 

The company has claimed in a statement that this investment is estimated to contribute $23.3 billion to India’s total gross domestic product (GDP) by 2030. It will support an estimated average of 1,31,700 full-time equivalent (FTE) jobs in Indian businesses each year. These positions, including construction, facility maintenance, engineering, telecommunications, and other jobs, are part of the data center supply chain in India. 

This will bring AWS’ total investment to $16.4 billion by 2030 in India. Prior to this, it invested Rs 30,900 crore ($3.7 billion) between 2016-2022. The company has claimed to contribute significantly in areas like workforce development, training, skilling opportunities, community engagement and sustainability initiatives through its spending. 
 
AWS has two data center infrastructure regions in India – the AWS Asia Pacific (Mumbai) Region, launched in 2016, and the AWS Asia Pacific (Hyderabad) Region, launched in November 2022[1]. The two AWS Regions are designed to provide Indian customers with multiple options to run workloads with greater resilience and availability, securely store data in India, and serve end users with low latency. 

It has invested more than Rs 30,900 crore (US $3.7 billion) in the AWS Asia Pacific (Mumbai) Region between 2016 and 2022. This includes both capital and operating expenditures associated with constructing, maintaining, and operating the data centers in that Region. AWS estimates that its overall contribution to the GDP of India between 2016 and 2022 was more than INR 38,200 crores (US $4.6 billion), and the investment supported approximately 39,500 FTE jobs annually in Indian businesses.
 
“PM Narendra Modi ji's Digital India vision is driving the expansion of cloud & data centers in India. India Cloud and the underlying data center infrastructure are important elements of India's digital infrastructure and ecosystem. I welcome the Amazon Web Services (AWS) 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 & Data Center Policy to catalyze innovation, sustainability, and growth of India Cloud,” said Rajeev Chandrashekhar, minister of state for electronics and information technology, skill development and entrepreneurship in India. 

“Since 2016, AWS has invested billions of dollars into cloud infrastructure in India to support the tremendous growth we have witnessed in the use of the cloud for digital transformation,” said Puneet Chandok, president of commercial business, AWS India and South Asia. 

“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% renewable energy goal by 2025. Our planned investment of Rs 1,05,600 crores (US $12.7 billion) by 2030 will help create more beneficial ripple effects, supporting India on its path to becoming a global digital powerhouse,” he noted. 

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