Amazon has announced a further investment of approximately £10.2 billion (equivalent to $13 billion) into India, specifically targeting the expansion of its artificial intelligence (AI) and cloud computing infrastructure. This latest commitment, revealed after Amazon CEO Andy Jassy met with Indian Prime Minister Narendra Modi, will primarily fund the growth of Amazon Web Services (AWS) data centre capacity in key Indian cities, including Mumbai and Hyderabad, through to 2030.
This substantial pledge marks Amazon's third major investment announcement for India in as many years, escalating the company's total investment commitments in the nation to an impressive £37.7 billion (approximately $48 billion). While the company has not detailed the precise allocation of this entire sum across its various Indian operations, such long-term commitments typically encompass both capital and operational expenditures rather than solely new infrastructure.
The move by Amazon aligns with a broader trend among global technology giants, all keen to capitalise on India's potential as a significant hub for the computing infrastructure essential to power advanced AI products. Other prominent players have also made considerable financial commitments; Microsoft, for instance, declared a £13.7 billion ($17.5 billion) investment in India by 2029, while Google unveiled plans in October to spend £11.7 billion ($15 billion) on establishing an AI hub and data centre infrastructure within the country.
India's appeal as an investment destination for data centre projects extends beyond these tech titans, attracting billions from international investors such as Australia's AirTrunk and the Canada Pension Plan Investment Board (CPP Investments), alongside domestic conglomerates like Reliance Industries and Adani Group. The Indian government has actively sought to foster this investment through policy incentives, including tax exemptions for foreign cloud providers whose services sold overseas are run from Indian data centres.
Beyond its AI and cloud ambitions, Amazon is also bolstering its domestic retail and logistics networks across India. The company intends to open more than 20 new fulfilment centres and over 100 last-mile delivery stations this year. Furthermore, Amazon has detailed plans to expand its quick-commerce service, Amazon Now, to over 300 cities and towns, intensifying competition in India's crowded quick commerce market against rivals such as Blinkit, Swiggy's Instamart, Zepto, and Walmart-owned Flipkart.