November 6 – Amazon announced plans to build new Amazon Web Services (AWS) infrastructure in Telangana, a state in southern India, in 2022.
As of this writing, the firm has not disclosed the project’s cost. However, K. T. Rama Rao, Telangana’s Minister for Information Technology, Electronics & Communications, Municipal Administration and Urban Development and Industries & Commerce Departments, tweeted the corporation’s investment will total $2.77 billion.
Once established, the AWS infrastructure will provide the Hyderabad region with computing, storage, networking, analytics, and artificial intelligence (AI) services.
One Initiative, Multiple Objectives
Amazon’s Indian AWS plans illustrate what PETA would call feeding two birds with one scone.
The e-commerce giant is working on a long-term project to bring its cloud services to Asia and Oceana. Thus far, the corporation has established nine “AWS Regions” throughout Australia, China, Japan, Singapore, and South Korea. Each of its AWS Regions features multiple “Availability Zones” that include independently powered and temperature-controlled data centers.
By creating a new digital node, the firm will expand its online services footprint in that part of the world.
Amazon’s AWS Asia Pacific (Hyderabad) Region will also provide local organizations with low latency processing, machine learning, and Internet of Things (IoT) support. It broke into India’s digital infrastructure market when it launched its AWS Asia Pacific (Mumbai) Region in 2016. The corporation’s latest initiative will likely allow it to increase its regional market share substantially.
The electronic retailer’s new data center clusters will keep more of India-originating information in the area. Amazon’s initiative will likely please local regulators as New Delhi has made data localization a priority.
That means the firm’s initiative will advance its regional and global development plans with one swift stroke.
A Highly Lucrative but Competitive Market
Market research group IDC forecasts the public Indian cloud segment will be worth $7 billion by 2025. If Amazon can establish a leading position in that sector, it could reap major financial rewards. However, the firm is not the only provider looking to corner the region’s online applications market.
In July, Google revealed it would spend $10 billion in India to cultivate its adoption of digital services. The company said its massive capital expenditure would help a new generation of locals pursue their entrepreneurial ambitions. Its investment will increase the country’s technological sophistication sector, which would make it more valuable to the conglomerate.
Intel also made a play to establish a place in India’s burgeoning digital economy this summer. The chipmaker invested $250 million in Jio Platforms, a leading regional conglomerate that offers telecommunications and online services.
The corporation’s new partnership followed Facebook’s decision to spend $5.7 billion to acquire a 9.99 percent stake in the local provider.
Microsoft beat its counterparts to the punch last year by making an agreement with Reliance Jio, a Jio Platforms subsidiary. The 10-year contract will enable the firm to offer its Azure, Microsoft 365, and Microsoft AI platforms to Indian individuals and businesses.
Why Big Tech is Spending So Much Money in India
Amazon, Intel, Microsoft, and other large tech corporations are making long-term bets on India because of its incredible potential.
Currently, around 560 million of India’s 1.3 billion citizens are Internet users. Market analysts expect the region’s online population to rise to 650 million by 2023. As the country’s digital transformation proceeds, residents’ interest in e-commerce and online services will grow. New Delhi strongly supports the process and launched a $6.6 billion incentive program to attract foreign technology companies.
The Indian government hopes its initiative will grow the local digital economy’s value to $1 trillion by 2025.
America’s Big Tech firms are assisting in constructing the nation’s technological infrastructure to help realize that ambition. If local officials successfully execute their plan, those corporations will receive a staggering return on investment. But more importantly, they will establish another global hub for digital innovation and commerce.