AWS launches second infra region in India, to invest $4.4 bn in India by 2030

Amazon Web Services (AWS), the cloud computing arm of Amazon.com, has launched a new infrastructure region in Hyderabad, with a projected investments of $4.4 billion (about ₹36,000 crore) in the next eight years. This is the company's second infrastructure region in the country, the first being launched in Mumbai in 2016.  

The AWS region is also estimated to support an average of more than 48,000 full-time jobs annually which provide its customers with more options to run workloads with greater resilience and availability, while securely storing data in the country. 

Developers, startups, entrepreneurs, enterprises, government and non-profit organisations, will have greater choice for running their applications and serving end users from data centres located in the country.  

Puneet Chandok, President – Commercial Business, AWS India and South Asia, AISPL said that the “new region is part of our long-term commitment to India to invest in cloud infrastructure, provide training to upskill the nation with digital capabilities, create local jobs, and enable a more sustainable future”.   

AWS Regions are composed of Availability Zones that place infrastructure in separate and distinct geographic locations, the company said in a statement. The Hyderabad Region consists of three availability zones. These zones are located far enough from each other to support customers’ business continuity, and “near enough to provide low latency for high availability applications” that use multiple availability zones.  

“Each availability zone has independent power, cooling, and physical security and is connected through redundant, ultra-low latency networks,” the statement said.

With the launch of the Hyderabad region, the company now has 96 Availability Zones across 30 geographic regions. It announced plans to launch 15 more Availability Zones and five more AWS Regions in Australia, Canada, Israel, New Zealand, and Thailand.  

The last few years have witnessed a spike in cloud adoption, with businesses investing in cloud infrastructure, tools, and software to strengthen their operations.  

According to a report by International Data Corporation (IDC), the overall Indian public cloud services market is expected to reach $13.5 bn by 2026, growing at a CAGR of 24% over 2021-26. 

Other tech companies have also set up their cloud regions in the country in the last few years. Google has two cloud regions in India, the first cloud region was set up in Mumbai in 2017 and the second one launched in Delhi NCR last year. Its rival Microsoft has four Azure cloud regions in the country, including Hyderabad, Pune, Mumbai, and Chennai. U.S cloud company Oracle also has two cloud regions, in Mumbai and Hyderabad. There’s also competition from local players as earlier this month, Mumbai-based Hiranandani Group’s data centre arm, Yotta Infrastructure too said the company will launch its own cloud platform and is currently beta testing its cloud hosting platform.  

According to estimates from Synergy Research Group, Amazon’s market share in the worldwide cloud infrastructure market amounted to 34% in the third quarter of 2022, still exceeding the combined market share of its two largest competitors, Microsoft Azure (21%) and Google Cloud (8%). Amazon, Microsoft and Google combined had a 66% share of the worldwide market in the quarter, up from 61% a year ago, it said.