Amazon Web Services (AWS) has launched its second Infrastructure Region in India here with a projected investment of $4.4 billion (about ₹36,000 crore) in the next eight years.

The investment is going to give a boost to the Indian datacentre market in the country. Nasscom has pegged investments in the India datacentre market to reach $6-8 billion a year by 2025. Besides the global leaders like AWS, Google and Microsoft, investment firms like Blackstone has set its eyes on the market. 

The fresh AWS investment includes capital expenditures on the construction of data centers, operational expenses related to ongoing utilities and facility costs, and purchases of goods and services from regional businesses.  The investment is also estimated to support an average of more than 48,000 full-time jobs annually at external businesses during this time. 

The company launched its first region in Mumbai in 2016.

India datacentre market

Besides Mumbai, Chennai, Bengaluru, Hyderabad and Delhi are emerging as major datacetre hubs in the country, driven by digitisation post-pandemic and growing data localisation requirements.

India, which is estimated to have cumulative investments of $28 billion during 2019-25, is home to over 80 datacentres.

The new AWS Region will provide its customers with more options to run workloads with greater resilience and availability, while securely storing data in the country. Developers, start-ups, entrepreneurs, enterprises, government and non-profit organisations, will have greater choice for running their applications and serving end users from data centres located in the country.

“Customers will have access to advanced AWS technologies to drive innovation including data analytics, security, machine learning, and artificial intelligence (AI),” a company executive said on Tuesday.

“The launch of the Hyderabad Region supports India’s digital transformation and is part of our long-term investment in the country since opening our first office in 2011,” Prasad Kalyanaraman, Vice-President of Infrastructure Services at Amazon Data Services, has said in a statement here.

With the launch of the Hyderabad region, the company now has 96 Availability Zones across 30 geographies. It announced plans to launch 15 more Availability Zones and five more AWS Regions in Australia, Canada, Israel, New Zealand, and Thailand. The Hyderabad Region consists of three Availability Zones.