Amazon Web Services (AWS), Amazon’s main growth engine, will make a new investment worth 1.6 trillion rupees in India.
According to major foreign media on the 18th (local time), AWS plans to invest 1.6 trillion rupees in India by 2030 to expand and build cloud infrastructure. Amazon said in a statement that the investment will create more than 100,000 full-time jobs a year.
AWS currently operates two data centers in Mumbai and Hyderabad, India. Foreign media said the new investment is aimed at responding to growing demand amid a series of new cloud-based services such as artificial intelligence and storage.
As the Indian government is known to be pushing for regulations that require global technology companies to operate data servers in their own countries, competitors such as Microsoft and Google are expected to enter India one after another.
According to market research firm IDC, India’s cloud computing market is expected to reach $13 billion by 2026.
Some analysts say that Amazon’s expansion of investment in India is related to the expansion of China+1 strategy, in which global technology companies add production bases and sales markets outside China.
Sriperumbudur, an industrial complex located in Tamil Nadu, southern India, is a place where global IT companies and manufacturers such as Apple, Samsung Electronics, and Hyundai Motor have already entered or are preparing to enter.
Earlier, global companies such as Foxconn, Apple’s largest partner, and Cisco, a U.S. network equipment company, said they will enter the Indian market or expand their investments to diversify their supply chains. Cisco said earlier this month that a new manufacturing facility in India will go into operation, while Apple’s largest partner, Foxconn, plans to invest $500 million in India.
Amazon is the overwhelming world leader in cloud computing. AWS Q1 revenue, Amazon’s cash cow and major revenue source, grew 15.8% Y/Y.
