Amazon will invest approximately $ 2.8 billion in Telangana to set up a new AWS Cloud region in the southern state of India, an Indian top politician announced on Friday.
The investment will allow Amazon to open an AWS cloud region in Hyderabad by mid-2022, said K. T. Rama Rao, Minister of Information Technology, Electronics and Communications, City Administration and Development, and Industry and Commerce, Government of Telangana.
The new AWS Asia Region will be Amazon's second infrastructure region in India, according to a press release. The amount of the investment was not disclosed.
"With the new AWS Asia Pacific (Hyderabad) region, even more developers, startups and companies, government agencies, educational institutions and nonprofits can run their applications and serve end users from data centers in India," said e-commerce giant.
But there is also a lot in it for Amazon. Jayanth Kolla, chief analyst at consulting firm Convergence Catalyst, told TechCrunch that if there are more cloud regions in India, it will be easier for Amazon to adhere to national data localization guidelines. This compliance will also help Amazon, which is currently leading the cloud market in India, attract more customers.
AWS has courted several high profile companies as customers over the past several years. Some of them are automotive giant Ashok Leyland, life insurance company Aditya Birla Capital, edtech giant Byju & # 39; s, Axis Bank, Bajaj Capital, ClearTax, Dream11, Edelweiss, Freshworks, HDFC Life, Mahindra Electric, Ola, Oyo, Policybazaar , RBL Bank and redBus, Sharda University, Swiggy, Tata Sky and Zerodha.
Kolla said there was a possibility that several more states in India could introduce their own versions of data localization laws in the future. "This is also a huge win for the state government of Telangana, home of the high-tech city of Hyderabad, for attracting that level of investment," he added.
"Companies in India are turning to cloud computing to reduce costs, increase flexibility and enable rapid innovation to meet the needs of billions of customers in India and abroad," said Peter DeSantis, senior vice president of global infrastructure and customer support at Amazon Web Services, in a statement. "Together with our AWS Asia Pacific (Mumbai) region, we offer our customers more flexibility and choice, while at the same time enabling them to design their infrastructure for even greater fault tolerance, reliability and availability across geographical locations."
The investment illustrates the opportunities that Amazon, which has invested more than $ 6.5 billion in India to date, sees the world's second largest internet market.
Amazon, Google, and Microsoft have been exploring various ways to expand the reach of their cloud services in India. Microsoft signed a long-term contract with telecommunications giant Jio Platforms last year to give millions of businesses access to Office 365 and other Microsoft services at lower cost. Earlier this year, Amazon entered into a strategic alliance with Airtel, one of the largest telecommunications operators in India. As part of the deal, Airtel will sell AWS to many of its customers. Microsoft today has three data center regions in India while Google has two.
India's public cloud market is at stake, which is expected to be worth $ 7 billion by 2024, according to market research group IDC.