Amazon Web Services to Invest $8.2 billion in India in the next 4-5 years: IT minister Ashwini Vaishnaw

Amazon Web Services (AWS), Amazon’s cloud computing division, is set to inject around $8.2 billion into Maharashtra in the coming years, according to an announcement from the Ministry of Electronics and Information Technology (MeitY) on Monday. IT Minister Ashwini Vaishnaw emphasized that this investment in cloud infrastructure will create many jobs. “This funding will drive considerable employment growth,” he noted. The rollout of this investment is slated for 2029–2030. Vaishnaw also shared that AWS plans to introduce its own graphics processing units (GPUs) and cloud management solutions in the area, as reported by Reuters.

Amazon maintains two data centres in India: one in Mumbai, which has been operational since 2016, and another in Hyderabad, which opened in 2022.

This AWS initiative aligns with India’sIndia’s push to boost domestic cloud storage capacity. The move supports findings from a recent IDC report, which valued India’s cloud storage market at $8.3 billion in 2023 and projected to grow to $24.2 billion by 2028.

In addition to its cloud efforts, Amazon committed $2 billion last year to bolster its e-commerce operations in India. During the annual Smbhav event in December 2024, Samir Kumar, Amazon India’s country manager, revealed ambitions to “digitize 10 million small businesses” within four years and integrate over 12 million small businesses into the digital economy. Kumar also noted that Amazon has facilitated nearly $13 billion in cumulative exports and generated approximately 1.4 million direct and indirect jobs in India.

Amazon has further pledged to drive over $80 billion in cumulative e-commerce exports from India by 2030—a goal four times larger than its earlier commitment of $20 billion by 2025.

India is increasingly attracting investment from AI and cloud computing firms. Earlier this year, Microsoft Chairman and CEO Satya Nadella unveiled plans to invest $3 billion in India over the next two years to enhance the country’s Artificial Intelligence and cloud infrastructure alongside workforce training programs. This investment will include new data centres to expand Microsoft’s AI capabilities. Through its ADVANTA(I)GE India initiative, the company aims to equip 10 million Indians with AI skills by 2030.

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