Amazon To Build Second Data Center In India Worth $2.8B

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Amazon is once again ready to set up another data center region in India. The company is to invest $2.8 billion to set up a new AWS cloud. The data center is to be built in the southern state of India, named Telangana. This news was announced on Friday by a top Indian politician. 

The investment will allow the company to launch AWS Cloud region in Hyderabad. Rao is the Minister for Information Technology, Electronics & Communications, Municipal Administration and Urban Development. 

He also accounts for the Industries and Commerce Departments, Government of Telangana. The new AWS cloud will be the second infrastructural region in India, said Amazon in a press release. The company did not disclose the size of the investment. 

“The new AWS Asia Pacific Region will enable even more developers, startups, and enterprises. It will add up to government, education, and non-profit organizations to run their applications. It will serve end-users from data centers located in India”, said Amazon. 

However, there is a lot in it for Amazon as well. By having more cloud regions, it will be easier to comply with the nation’s data localization policy. This compliance will also help Amazon. The company currently leads the cloud market in India, attracting more customers. 

Amazon’s Indian Market 

AWS accounts for several high profile businesses as customers in recent years. It includes Ashok Leyland, Aditya Birla Capital, Byju’s, Axis Bank, Bajaj Capital, Clear Tax, and Dream 11. Also, Edelweiss, Freshworks, HDFC Life, Mahindra Electric, Ola, Oyo, Policybazaar, RBL Bank. 

This list continues to redBus, Sharda University, Swiggy, Tata Sky, and Zerodha. There is a possibility that several more states in India will introduce their own versions of data localization laws. “This is also a big win for the state government in Telangana”, said Kolla. 

This is the largest foreign direct investment in Telangana, said Rama Rao. 

“Businesses in India are embracing cloud computing to reduce costs and increase agility. This will enable rapid innovation to meet the needs of billions of customers”, said Peter DeSantis. “Together with our AWS Asia Pacific Region, we’re providing customers with more flexibility and choice.

This allows them to architect their infrastructure for even greater fault tolerance, resiliency, and availability across geographic locations”. Amazon has poured more than $6.5 billion into its India operations to date. 

Amazon, Google, and other tech giants have released various ways to expand their services in India. Microsoft linked with Jio platforms last year. Earlier this year Amazon formed a strategic alliance with Airtel. As a part of its deal, Airtel will sell AWS to many of its customers. 

Microsoft has three while Google has two data center regions in India at present. 

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