Why Amazon is Investing Another $13 Billion in India's AI Data Centers

Dow Jones06-25 22:57

Amazon has committed an additional $13 billion to expand its artificial-intelligence and cloud infrastructure in India as it doubles down on the world's most populous country.

This latest infusion brings Amazon's total planned investment in India to $48 billion between 2026 and 2030. The fresh capital will be used specifically to expand data center capacity in Mumbai and Hyderabad, Amazon said.

India has become the next frontier for hyperscalers, or tech giants building massive data centers to house cloud computing infrastructure. Amazon pledged to invest $35 billion in the country last year, around the same time Microsoft earmarked $17.5 billion of its own.

Alphabet-owned Google, another premier hyperscaler, announced in October that it would spend $15 billion over a five-year span to expand data-center capacity in southern India.

As for Amazon, the e-commerce giant plans to be "a long-term partner in India's growth story," CEO Andy Jassy said in a statement Thursday. The announcement coincided with Jassy's visit to New Delhi, where he met with Prime Minister Narendra Modi.

Amazon's foothold in India goes back more than a decade. The company first entered the market with the launch of a price comparison site called Junglee in 2012, followed by a dedicated online shopping marketplace in 2013.

Its AI ambitions in the country, however, have gathered pace over the past few years, in line with an explosion of demand for the technology. As Amazon Web Services expanded its footprint in India, it began selling cloud-based AI and machine learning tools to local enterprises and government entities.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment