INDIA: Amazon.com Inc.’s cloud computing division will spend 1.06 trillion rupees ($13 billion) in India by the end of this decade, doubling down on its previous investments to meet the rising demand for such services in one of Asia’s fastest-growing economies.
This is in addition to its $6.5 billion investment in India’s e-commerce,where it has grown quickly over the years while being constrained by a stringent regulatory environment that forces it to just operate a marketplace.
The most recent investment will be utilised to develop its cloud infrastructure in India and will sustain approximately 100,000 full-time jobs annually, Amazon Web Services (AWS) stated in a statement on Tuesday. By 2030, the sum of all planned investments in India will be around $16.4 billion.
The corporation already has two data centres in the Indian subcontinent: one in Mumbai, which started in 2016, and another in Hyderabad, which opened in 2022.
The cloud platform provides more than 200 services, including storage, networking, and artificial intelligence.
Amazon’s move comes as India intensifies attempts to draw more significant investments in the digital sector in order to meet the surge in demand for data storage and services from businesses and governmental agencies.
According to market research firm IDC, the market for public cloud services in India is predicted to reach $13 billion by 2026, growing at a compound annual growth rate of 23.1% from 2021–26.
In recent years, a number of multinational corporations, notably Microsoft Corp. (MSFT.O) and Alphabet Inc.’s (GOOGL.O) Google, have increased their cloud investments in India as New Delhi attempts to acquire tighter control over big tech businesses by pressuring them to store data locally.
The nation is presently creating a cloud and data centre policy to control the industry. In recent months, high-profile investments have also been attracted to India’s broader tech sector.
Cisco Systems (CSCO.O), a U.S. manufacturer of networking equipment, announced earlier this month that it will begin manufacturing in India to diversify its global supply chain, while Foxconn (2317.TW), a supplier to Apple Inc. (AAPL.O), will invest $500 million to build plants in the Telangana region of southern India.
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