Amazon is investing about $ 2.8 billion in a new AWS Global Cloud Datacenter in India, an Indian politician said.
With the investment, Amazon will realize a data center in Hyderabad by mid-2022, according to K.T. Rama Rao, IT Minister in India. It will be Amazon’s second Indian data center.
Legislation in India
The second data center makes it easier for Amazon to comply with new data localization laws. It also helps Amazon keep a grip on the top spot in the Indian cloud market.
Amazon AWS is doing well in India. In recent years, several high-profile companies have been enlisted as clients, including Ashok Leyland, Byju’s, Axis Bank, Mahindra Electric, Ola, Oyo and Tata Sky.
Amazon’s decision is seen as a victory for the city of Hyderabad and Telangana state. The foreign investment of $ 2.8 billion is a record for the region.
The decision marks the opportunities Amazon sees in India. To date, more than $ 6.5 billion has been invested in the country, the world’s second largest internet market.
Amazon, Google and Microsoft have explored different ways to increase the reach of their cloud services in India. Microsoft last year signed an agreement with telecom giant Jio Platforms to provide millions of Jio customers with access to Office 365 and other Microsoft services.
Amazon signed a strategic alliance earlier this year with Airtel, one of the largest telcos in India. As part of the deal, AWS services will be offered to all Airtel customers. Microsoft today has three data centers in India, while Google has two.
At stake is India’s cloud market, which will be worth about $ 7 billion by 2024, according to market researcher IDC.