Amazon on Thursday announced plans to invest $12.7 billion into cloud business in India by 2030 as it pushes ahead to scale up the Amazon Web Services (AWS) infrastructure in key overseas markets. This comes at a time when the company has pared back several other services in the region.
The company added its spendings will support 131,700 full-time jobs across roles such as engineering, telecommunications, and construction.
The fresh capital infusion follows AWS’ investment of Rs 30,900 crores or $3.7 billion between 2016-2022, bringing Amazon’s cloud arm’s total investment in India to Rs 1,36,500 crores or $16.4 billion by 2030.
AWS’s investment in India is likely to have a ripple effect on the local economy, especially in areas such as workforce development, training and skilling opportunities, community engagement, and sustainability initiatives.
The US giant currently maintains two data center regions in the country: the AWS Asia Pacific (Mumbai) and the AWS Asia Pacific (Hyderabad).
The announcement also coincides with Amazon’s closure of numerous businesses in India, a move that prompted several analysts to ponder whether the American giant was scaling back its presence in the country. Walmart, Amazon’s global rival, has also spent over $2.5 billion in India this year.
Amazon’s cloud division holds a dominant position within the market, boasting a roster of prominent customers such as the Indian Ministry of Electronics and Information Technology, Axis Bank, HDFC Life, BankBazaar, Niti Aayog, PhysicsWallah, and Acko.