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AWS to Invest $12.7 Billion in India

Ibrahim Poonawala

AWS, or Amazon Web Services, is an affiliate of Amazon.com that actively provides cloud computing services. They provide them to individuals, businesses, and organizations. With a range of amenities and offerings including computing power, storage, and much more, AWS is a powerful figure in cloud development and beyond.

Recently, Amazon said they are planning to invest over $12 billion in its work abroad with India by 2030. Puneet Chandok, the current president of commercial business at AWS in that region, stated that this AWS investment will undoubtedly create “more beneficial ripple effects, supporting India on its path to becoming a global digital powerhouse.” (Techcrunch & AWS Investment in India)

3 Reasons Why Amazon Is Investing in India

A Psuedo-Reapportioning of Past Investments

In November of 2022, The Wall Street Journal reported that Amazon would be shutting down some efforts in India. Three non-core subsidiaries, including Amazon Food, Amazon Distribution, and a lesser-known education tech business, soon closed. The reasoning? Per Wall Street’s title, it was “India fatigue.”

With a competitive Indian market and less progress than hoped on some of their trialed efforts, Amazon’s corporate leaders decided shutting certain aspects of business in India would be best. As noted on PYMNTS.com, the decision to close down these AWS companies was difficult and something that they didn’t take “lightly.”

Yet, as already shared, AWS appears to be very committed to working with India on the whole. Their new move will create thousands of new jobs and new projects for years to come. Though it is highly unlikely those who lost jobs at the closed companies will suddenly find new work at the new entities. There seems to be something nice about Amazon working to find a better place in the Indian economy to not oversaturate where good competition and marketing already exist.

And so, Amazon’s $12.7 billion investment plays out as a pseudo-reapportioning of their past investment.

Building an Infrastructure

Another aspect of AWS making this move in India is the building out of infrastructure for many years.

As stated by AWS’s president of commercial business in India, “AWS is committed to driving positive social and economic impact in India. In addition to building cloud infrastructure and helping local customers and partners digitally transform, we have trained more than four million people in India with cloud skills since 2017…(and) invested in six utility-scale renewable energy projects.” Evidence shows that AWS longs to not just find a better aspect of the Indian market to exist in. But it also longs to strengthen its relationship with India on the whole.

This multi-billion dollar commitment to round out the decade will radically multiply the 6.5 billion AWS has invested over the past 10 years in India. Furthermore, the Indian minister of state for electronics and information technology, Rajeev Chandrasekhar, applauds the move of Amazon as well given that the Indian cloud and data center infrastructure are “important elements of India’s digital realm and ecosystem.”

Data Storage Development

It is no secret that India has a rapidly expanding digital economy. At the same time, it’s no secret that India is a growing country with an already massive population. So, India appears to be a great place for AWS and other major companies to develop data storage. This is as demand rises in India, South Asia, and even worldwide. As seen on Reuters.com, the company already has two data centers in this region. Plus, they seem well-positioned to only develop more. With one in Mumbai and another in Hyderabad, many cities will likely ask Amazon to become an AWS home as well. More data storage centers mean more work and more work means more people engaged in the workforce.

This fast-growing economy is a green light for more growth, and Amazon is excited to be a part of it.

Further Reading

Wanting to take in more info on data storage, AI, and the cloud, or landing your own data job? Read on and enjoy the droves of information to be found.

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