Amazon to Invest Additional $13 Billion in India's AI and Cloud Infrastructure
Quick Look
- Amazon announced an additional $13 billion investment in India's AI and cloud infrastructure, bringing its total commitment to $48 billion by 2030.
- These funds will expand AWS data centers in Mumbai and Hyderabad, aligning with India's digital growth priorities.
AI-generated summary
Why It Matters
Amazon previously pledged $35 billion in India, and other hyperscalers like Microsoft and Google are also making significant investments in the country's data center and AI infrastructure.
Amazon plans to invest an additional $13 billion to expand artificial intelligence and cloud infrastructure in India, taking its total investment in the country to $48 billion between 2026 and 2030.
These funds will be used to expand AWS data center capacity in Mumbai and Hyderabad, the company said in a statement on Thursday. In December last year, Amazon had pledged to invest $35 billion, as hyperscalers raced to get a foothold in the Indian market.
Amazon CEO Andy Jassy said the company is committed to being "a long-term partner in India's growth story" and wants to align with the country's "priorities of democratizing access to AI, digitizing small businesses, creating jobs, and enabling exports."
Jassy met Indian Prime Minister Narendra Modi on Thursday and highlighted the importance to Amazon of India, where the company operates several businesses spanning e-commerce, AI, cloud, and entertainment.
The company said its total investment in India between 2010 and 2030 stands at $88 billion.
Through its data centers, Amazon hopes to provide Indian startups, enterprises, and government organizations with access to custom AI chips, managed AI services, and secure and reliable cloud technologies.
Last December, India secured investment to the tune of $50 billion within 24 hours from U.S. big tech companies such as Amazon and Microsoft. Google, another major hyperscaler, is also investing $15 billion to build data center capacity for a new artificial intelligence hub in southern India.
India does not yet produce cutting-edge chips domestically, nor does it have a frontier-scale foundation model on a par with leading U.S. or Chinese models. However, the data center space in the country is growing rapidly.
To encourage the development of data centers in India, the Indian government has offered long‑term tax breaks to major global hyperscalers.
"India's DC industry is emerging as one of the fastest growing globally," global brokerage Nomura said in a report earlier this month. India's data center capacity has risen to around 1.6GW in 2025 from 350MW in 2019, implying a 29% compounded annual growth versus 20% globally.
What to Watch
AI outlook — possibilities, not facts
AWS will expand data center capacity in Mumbai and Hyderabad.
Very likely · Within months
Open Questions
- Specific timeline for AWS data center expansion?
- Detailed breakdown of the $13 billion investment?
- How will India develop its own cutting-edge chips?
