Here's why AWS is spending $12.7B on data centers in India

Amazon is bumping up its cloud investment in India as the working-age population of that country increases exponentially and customer demand for cloud services grows.

Amazon Web Services (AWS) said it will invest $12.7 billion (INR 1,05,600 crores) in cloud infrastructure in India by 2030. The company estimates this will produce over 131,700 jobs, including positions in the construction, facility maintenance, engineering and telecommunications sectors.

IDC has said that the public cloud services market in India is expected to be worth $13 billion by 2026. Revenue from public cloud services totaled $2.8 billion in the first half of 2022, according to the firm.

So this market is going to balloon in size as the population continues to explode. Amazon obviously sees the value in spending on data center infrastructure as demand skyrockets. 

AWS already has two data center infrastructure regions in India: one in Mumbai, launched in 2016, and the other in Hyderabad, launched in November 2022. AWS said it has invested more than $3.7 billion in the AWS data center region in Mumbai since its launch. The two areas are designed to provide customers with multiple options to run workloads with greater resilience and availability, securely store data in India, and serve end users with low latency.

AWS is already the top ranked public cloud provider in India, followed by Microsoft Azure and Google Cloud, according to Netspace India.