Amazon is set for a massive $7 billion data center investment in Hyderabad, India in an expansion effort in the region. The company has signed an agreement with the Government of Telangana to significantly expand its data center footprint in the Indian state.
AWS is expected to make the multi-billion-dollar investment in its cloud infrastructure in Hyderabad over the next 14 years. Furthermore, the state will offer a package of “facilitation measures.” It will also support AWS in quickly scaling up its infrastructure in the country.
“We are delighted by the extraordinary confidence shown by global leaders like Amazon in Telangana,” noted Telangana’s Chief Minister A. Revanth Reddy. He also noted that the scale of commitment reflects the trust investors place in the government. “Stability and long-term vision to propel Telangana towards its $3 trillion economy goal,” he added.
Outlook on Amazon Hyderabad Data Center Investment
The move by Amazon in the Hyderabad data center investment is one that is expected to pay off in coming years. AWS India and South Asia president, Sandeep Dutta noted their anticipation in contributing to Telangana’s vision.
“We look forward to contributing to Telangana’s vision of becoming a global technology hub by creating employment opportunities, supporting local businesses, and enabling a skilled workforce that will drive India’s digital economy forward,” he said. Amazon Web Services (AWS) already has a significant presence in Hyderabad.
The company launched its cloud region in the city in 2022. Moreover, it was previously reported to be planning to invest significantly in the region. Later, AWS met with the IT and Industries Minister for Telangana to discuss future expansions in the state. This happened in August, 2024.
Earlier this year in January, Amazon committed $8.3 billion to developing cloud infrastructure in one of its cloud regions, AWS Asia-Pacific in Mumbai. Other than investing internationally, Amazon is also making commendable strides in data centers on home soil. One includes a $20 billion investment of its AI data centers in Pennsylvania.
A Deepening Investment in India
Other than the Hyderabad data center investment, Amazon’s investments in data center projects across India is exemplary. Amazon earlier this week committed to investing over $35 billion in India’s cloud and artificial intelligence space by 2030.
The moment comes as hyperscalers race to get a foothold in the market. The investment builds on nearly years long $40 billion already channeled in the country, highlighting AWS’s commitment. In the press release, Amazon noted the invested funds are targeting AI-driven digitization.
It is also targeting export growth and job creation. The move aligns with India’s national priorities to build up its local AI environment.
The Impact of Amazon’s Data Center Investments in India
The investments channeled by Amazon are expected to have a major impact in shifting the country’s economy. By 2030, Amazon said the plan is expected to generate an additional 1 million direct, indirect, induced and seasonal jobs in India.
Furthermore, it expects to quadruple exports to $80 billion and deliver AI benefits to 15 million small businesses. India is one of the fastest‑growing regions for AI spending within Asia Pacific. The investment also highlights Amazon’s bet on India’s booming digital economy. The company has been building fulfillment centers, as well as data centers and payments infrastructure under its Amazon Web Services subsidiary.
Amazon to Invest $7B in Hyderabad Data Centers: Project Factsheet
Overview
Amazon Web Services (AWS) recently entered into an agreement with the Telangana government to invest $7 billion in a large data center expansion project at Hyderabad. This will result in a large expansion of cloud and AI capabilities at an investment over a period of 14 years.
Key Details
Investment Amount: 7 billion dollars
Date of Agreement: Government of Telangana and AWS
Project Lead: Amazon Web Services (AWS)
Main Focus: Cloud infrastructure, AI-powered digital services
Timeline: 14 years phased development plan
Government Support: Telangana to offer facilitation facilities for smooth implementation
Locations
Main Hubs: Hyderabad, Telangana
Existing Presence:
AWS launched its cloud region at Hyderabad in 2022
Extra Expansions:
Telangana locations that will expand AWS’s local infrastructure setup in the future
Amazon’s Presence in Hyderabad:
State Impact: It aligns with Telangana’s vision of making it a global technological and digital innovation destination.
Employment Generation: It will stimulate employment generation on a massive scale and on various levels due to direct, indirect, and skilled employment
India-Wide Context: A part of Amazon’s commitment towards an overall investment of more than $35 billion in India’s cloud and AI sector by 2030
Strategic Significance: It helps improve AWS’s presence within one of the fastest-growing digital markets within Asia
