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Cloud Infrastructure in India: AWS to invest $12.7 bn by 2030; will generate over 1 lakh jobs

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AWS has recently disclosed its intention to allocate INR 1,05,600 crores (US $12.7 billion) towards cloud infrastructure in India by 2030, aiming to satisfy the escalating customer demand for cloud services within the country. This substantial investment is projected to contribute around INR 1,94,700 crores (US $23.3 billion) to India’s overall gross domestic product (GDP) by the year 2030.

The planned investment in data center infrastructure will facilitate the creation of an average of 1,31,700 full-time equivalent (FTE) job opportunities annually in Indian businesses. These job opportunities encompass a range of roles within the data center supply chain, including construction, facility maintenance, engineering, telecommunications, and other related positions.

This new investment by AWS will have a positive impact on the local economy, contributing to workforce development, training and skilling opportunities, community engagement, and sustainability initiatives.

The decision by Amazon comes at a time when India is actively seeking substantial investments in the digital sector to meet the rising demand for data storage and services from both corporate and government entities.

According to market intelligence provider IDC, India’s public cloud services market is projected to reach $13 billion by 2026, with a compound annual growth rate of 23.1% for the period of 2021-2026.

Rajeev Chandrashekhar, minister of state for electronics and information technology, skill development and entrepreneurship in India commented, “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.”

AWS has established two data center infrastructure regions in India. The first one, AWS Asia Pacific (Mumbai) Region, was launched in 2016, while the second one, AWS Asia Pacific (Hyderabad) Region, was introduced in November 2022. These two regions offer Indian customers a range of options to run their workloads, ensuring enhanced resilience and availability. They also provide secure data storage within India and enable the delivery of services to end users with minimal latency. From 2016 to 2022, AWS invested over INR 30,900 crores (US $3.7 billion) in the AWS Asia Pacific (Mumbai) Region, covering both capital and operational expenses involved in the construction, maintenance, and operation of the data centers in that region.

AWS is dedicated to fostering positive social and economic development in India. Alongside constructing cloud infrastructure and aiding local customers and partners in their digital transformation journeys, AWS has successfully trained over four million individuals in India with essential cloud skills since 2017. Moreover, the company has made investments in six large-scale renewable energy projects, aligning with its global objective of achieving 100% renewable energy usage by 2025. With its planned investment of INR 1,05,600 crores (US $12.7 billion) by 2030, AWS aims to generate even more positive effects, contributing to India’s ambition of becoming a leading digital powerhouse on the global stage.

Read next: AWS and Azure lead in cloud adoption and spending trends – Flexera report

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