Amazon To Expand AWS Data Centres In India With $21 Billion Investment

Amazon has committed an additional $13 billion towards artificial intelligence (AI) and cloud infrastructure in India by 2030, taking its total planned investment in the segment to more than $21 billion between 2026 and 2030.

The announcement came after Amazon Chief Executive Officer Andy Jassy met Prime Minister Narendra Modi and outlined the company's plans to expand investments across cloud computing, AI, ecommerce, logistics and digital skilling.

The fresh commitment places Amazon among the largest global investors in AI and cloud infrastructure in India. The company said the investment will be used to expand Amazon Web Services (AWS) data centre capacity in Mumbai and Hyderabad.

AWS Expansion In India

Amazon said the expanded infrastructure will help startups, enterprises and government organisations access AI and cloud technologies, including custom AI chips, managed AI services, developer tools and secure cloud platforms.

The investment comes as technology companies increase spending on AI infrastructure to meet the rising demand for AI applications and cloud services in India. Jassy said India continues to be one of Amazon's most important growth markets. He pointed to strong momentum across the company's ecommerce, AI and cloud businesses.

India Investments To Cross $88 Billion

With the latest announcement, Amazon's cumulative investments in India between 2010 and 2030 will exceed $88 billion. The company said it plans to invest a total of $48 billion through 2030 to expand and support its businesses in the country.

Amazon said it has digitised 12 million small businesses since entering India. It has also enabled more than $20 billion in cumulative ecommerce exports and supported 2.8 million jobs. More than 10 million Indians have received cloud skills training through its programmes. By 2030, Amazon aims to:

• Support 3.8 million jobs
• Enable $80 billion in cumulative exports
• Extend AI benefits to 15 million small businesses
• Provide AI education to 4 million government school students

Ecommerce And Logistics Expansion

Alongside technology investments, Amazon plans to expand the operations network that supports its ecommerce and quick commerce businesses.

The company said it will launch more than 20 new fulfilment centres and over 100 new last-mile delivery stations this year. Amazon said the expansion will help improve delivery speed and reliability, particularly in tier-III and tier-IV cities.

Demand from smaller cities continues to grow. According to the company, 85% of new customers and more than 65% of orders now come from tier-II and tier-III markets. More than 70% of new Prime members are also from non-metro cities.

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New Welfare Programme For Delivery Associates

Amazon India also announced Sammaan, a welfare programme for delivery associates across its logistics network. The initiative will offer scholarships for associates' children, insurance coverage, access to government welfare and financial inclusion programmes, road safety support and other services.

The company plans to expand its Ashray rest centres to 250 locations this year. These facilities will be accessible to delivery associates across the industry. Amazon said part of its previously announced $300 million investment in operations and associate well-being will be used to support these initiatives.

Sources:

The Economic Times

Bloomberg