Amazon Web Services plans to expand its data center capacity in India to 2-3 gigawatts

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2026-03-24 03:31:23

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Investing.com - According to The Economic Times on Tuesday, informed sources report that Amazon Web Services (NASDAQ:AMZN) plans to expand its data center capacity in India to 2-3 gigawatts with the support of tax incentives.

The report states that this cloud service provider has signed letters of intent with six to eight hosting companies, including Sify Technologies (NASDAQ:SIFY), Yotta Data Services, NTT Data (TYO:3850), CtrlS, and CapitaLand Group (SGX:CAPN), to accelerate expansion in Mumbai and Hyderabad.

An executive told The Economic Times, “This is one of the largest capacity acquisition efforts by a hyperscale cloud provider.”

Amazon Web Services currently operates two infrastructure regions in India, located in Mumbai and Hyderabad, and has been expanding its footprint to meet the growing demand for cloud computing and artificial intelligence services.

The company previously announced in January 2025 that it would invest $8.3 billion in its Mumbai cloud region, a project expected to contribute $15.3 billion to India’s GDP by 2030.

Industry estimates cited in the report indicate that India’s public cloud market was valued at $10.9 billion in 2024 and is expected to grow to $30.4 billion by 2029.

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