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Thursday, January 23, 2025

AWS to Invest $8.3 Billion in Maharashtra for Cloud Infrastructure Development

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AWS to Invest $8.3 Billion in Maharashtra for Cloud Infrastructure Development

Amazon Web Services (AWS) has announced a significant investment of $8.3 billion in Maharashtra as part of its larger $12.7 billion plan to develop cloud infrastructure in India by 2030. This investment is expected to contribute $15.3 billion to India’s GDP and support over 81,300 full-time jobs annually in the local data centre supply chain by the end of the decade.

Strengthening Maharashtra's Digital Infrastructure

The investment comes at a time when global hyperscalers are intensifying their efforts to meet the growing demand for cloud services and artificial intelligence (AI) in the region. A memorandum of understanding (MoU) was signed in Davos to formalize the plan, marking a pivotal moment for Maharashtra’s technological advancement.

Maharashtra Chief Minister Devendra Fadnavis, who is attending the annual World Economic Forum meeting in Davos, emphasized the importance of this collaboration. He stated, “AWS's decision to set up its operations in the Mumbai Metropolitan Region is a pivotal moment for Maharashtra. As we fulfill our vision of becoming a global capital for data centers, this collaboration will not only bolster our state's technological infrastructure but also create new opportunities for innovation, economic growth, and job creation.”

AWS's Commitment to India’s Digital Economy

David Zapolsky, Senior Vice President, Global Public Policy and General Counsel at Amazon, highlighted AWS’s commitment to India’s digital future. He said, “At AWS, we see tremendous potential for India’s digital economy to thrive for years to come with the growing demand for cloud and artificial intelligence. This is why we plan to invest $8.3 billion into cloud infrastructure in Maharashtra by 2030.”

AWS has already invested more than $3.7 billion in cloud infrastructure in Maharashtra. The company established its first data centre in India in Mumbai in 2016, followed by a second one in Hyderabad.

Competition in the Cloud Services Market

The announcement comes amid increasing competition among global hyperscalers. Rival Microsoft has also revealed plans to invest $3 billion in cloud and AI infrastructure in India over the next two years. This investment will include the establishment of new data centres, with Microsoft’s fourth data centre region in India expected to go live in 2026.

Economic and Employment Impact

The $8.3 billion investment by AWS is projected to significantly boost Maharashtra’s economy. In addition to contributing $15.3 billion to India’s GDP, the initiative will create over 81,300 full-time jobs annually in the local data centre supply chain by 2030. This development underscores the critical role of cloud infrastructure in driving economic growth and innovation.

Conclusion

AWS’s substantial investment in Maharashtra marks a transformative step in India’s digital journey. By strengthening cloud infrastructure and fostering innovation, this initiative is set to enhance Maharashtra’s position as a global hub for data centres and technology. The collaboration between AWS and the Maharashtra government highlights the potential of public-private partnerships in driving economic growth and technological advancement.

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