Amazon Expands India Investment With New $13 Billion Cloud and AI Commitment
In Focus
- Amazon will use the investment to expand AWS data center capacity in India
- The new investment is the third major commitment Amazon has made in recent years
- To date, Amazon has committed to invest a total of $48 billion in India
Amazon will invest an additional $13 billion in India for cloud and AI infrastructure. Amazon CEO Andy Jassy announced the new investment after meeting Prime Minister Narendra Modi in New Delhi. In India, Amazon’s AI investment will be used to expand AWS data center capacity in Hyderabad and Mumbai.
Why is Amazon Expanding Cloud Services in India?
Amazon is expanding AWS services in India because the country is one of the world’s largest and fastest-growing digital markets. India also has strong demand for cloud computing and AI.
The latest AI data center investment is the third major commitment that Amazon has announced for India in recent years. In 2023, the tech giant announced a $15 billion investment through 2030. The amount included a $12.7 billion investment towards AWS.
Last year, the company announced a $35 billion multi-year capital commitment to strengthen AI capabilities in India. To date, Amazon’s investment commitments in India amount to $48 billion. Often, such long-term commitments include capital and operating expenses. Amazon is yet to provide details on how its $48 billion investment will be deployed across its businesses in India.
“Our business priorities continue to align with India’s priorities of democratizing access to AI, digitizing small businesses, creating jobs, and enabling exports,” Amazon CEO Andy Jassy as per the company’s statement.
Besides expanding AI data centers, Amazon is looking to grow its quick-commerce service, Amazon Now, in India. Earlier this week, the ecommerce giant announced that it will expand the service to over 300 cities across India. The move comes as Amazon seeks to expand its market share in the country where it competes with Swiggy’s Instamart, Flipkart, and Zepto.
Which Other Tech Companies are Investing in India?
Amazon’s $13 billion commitment comes at a time when global tech companies are increasing investment in India. Most of them are betting that India will become a hub for the computing infrastructure required to power AI systems.
In January last year, Microsoft committed to spend up to $3 billion on AI and Azure cloud expansion in India. In October 2025, Google committed to invest $15 billion in the country to establish an AI hub and data center facilities.
India continues to attract investments for data center projects from a wide range of investors. Recently, Meta signed a data center deal with Reliance Industries to secure the compute power it needs to scale AI systems. Under the partnership, Meta will lease the 168-megawatt compute capacity from Reliance’s Jamnagar data center.
Why Does India Attract Tech Investments?
India signed a revolutionary trade agreement with the EU early this year, and has been intentional about attracting investment into its digital infrastructure sector. Among the policy incentives that the country has introduced is tax exemption for foreign cloud providers as long as associated workloads are hosted in data centers located within the country.
