Amazon will reportedly invest around $2.8 billion in India to set up a new AWS Cloud region in the country.
The data centre will allow Amazon to launch an AWS Cloud region in Hyderabad by mid-2022, said K. T. Rama Rao, Minister for IT, Electronics & Communications, Municipal Administration and Urban Development and Industries & Commerce Departments, Government of Telangana.
Happy to announce the largest FDI in the history of Telangana! After a series of meetings, AWS has finalized investment of ₹20,761 Cr ($ 2.77 Bn) to set up multiple data centers in Telangana
— KTR (@KTRTRS) November 6, 2020
The new AWS Asia Region will be Amazon’s second data centre in India, Amazon said in a press release. It did not disclose the size of the investment.
“The new AWS Asia Pacific (Hyderabad) Region will enable even more developers, startups, and enterprises as well as government, education, and non-profit organizations to run their applications and serve end-users from data centres located in India,” the e-commerce giant said.
AWS has courted several high-profile businesses as customers in recent years. Some of these include automobile giant Ashok Leyland, life insurance firm Aditya Birla Capital, edtech giant Byju’s, Axis Bank, Bajaj Capital, ClearTax, Dream11, Edelweiss, Freshworks, HDFC Life, Mahindra Electric, Ola, Oyo, Policybazaar, RBL Bank, redBus, Sharda University, Swiggy, Tata Sky and Zerodha.
“This is also a big win for the government of Telangana, home of the high tech city Hyderabad, for attracting this level of investment,” he added. This is the largest foreign direct investment in Telangana, a state that was formed in 2014, said Rama Rao.
“Businesses in India are embracing cloud computing to reduce costs, increase agility, and enable rapid innovation to meet the needs of billions of customers in India and abroad,” said Peter DeSantis, senior vice president of Global Infrastructure and Customer Support, Amazon Web Services, in a statement. “Together with our AWS Asia Pacific (Mumbai) Region, we’re providing customers with more flexibility and choice, while allowing them to architect their infrastructure for even greater fault tolerance, resiliency, and availability across geographic locations.”
Amazon, Google and Microsoft have explored various ways to expand the reach of their cloud services in India. Microsoft inked a long-term deal with telecom giant Jio Platforms last year to offer millions of businesses access to Office 365 and other Microsoft services at a more affordable cost. Earlier this year, Amazon formed a strategic alliance with Airtel, one of the largest telecom operators in India. As part of the deal, Airtel will sell AWS to many of its customers. Microsoft today has three data centre regions in India, while Google has two.
At stake is India’s public cloud market, which, according to market research group IDC, is expected to be worth $7 billion by 2024.