An Indian politician announced Friday that Amazon will invest about $2.8 billion in Trenganna to build a new AWS cloud region in the southern indian state, Foreign Media TechCrunch reported. Minister of Information Technology, Electronics and Communications, Municipal Management and Urban Development and The Ministry of Industry and Commerce of the Government of Trenganna, K. T. Rama Rao said the investment will allow Amazon to launch the AWS cloud region in Haidraba by mid-2022.
Amazon said in a press release that the new AWS Asia region will be Amazon’s second infrastructure region in India. It did not disclose the size of the investment.
“The new AWS Asia Pacific (Hydraba) region will enable more developers, start-ups and businesses, as well as government, education and non-profit organizations, to run their applications and serve end users from data centers in India,” the e-commerce giant said.
But for Amazon, there are many benefits. Jayanth Kolla, chief analyst at Consult Catalyst, a consultancy, told TechCrunch that amazon would be more likely to comply with the country’s data localization policy by having more cloud areas in India. This compliance will also help Amazon, which is currently a leader in cloud computing in India, attract more customers.
In recent years, AWS has attracted a number of well-known enterprises as customers. These include car giant Ashok Leyland, life insurance company Aditya Birla Capital, education technology giant Byju’s, Axis Bank, Bajaj Capital, ClearTax, Dream11, Edelweiss, Freshworks, HDFC Life, Mahindra Electric, Ola, Oyo, Policybazaar, RBL Bank, RedBus, Sharda University, Swiggy, Tata Sky and Zerodha.
In the future, Kolla said, several other indian states could introduce their own versions of data localization laws. “This is also a big win for the government of Telangana, home to the high-tech city of Haidraba,” he said. He added. Rama-Rao said it was the largest foreign direct investment in the state of Telangana, which was established in 2014.
“Indian businesses are embracing cloud computing to reduce costs, increase agility, and enable rapid innovation to meet the needs of billions of customers in India and overseas,” Peter DeSantis, senior vice president of global infrastructure and customer support for Amazon Web Services, said in a statement. “Together with our AWS Asia Pacific (Mumbai) region, we are providing our customers with more flexibility and choice while allowing them to structure their infrastructure in different geographic locations for greater fault tolerance, resiliency and availability.”
The investment illustrates the opportunities Amazon sees in the world’s second-largest Internet market, where it has invested more than $6.5 billion in its Indian operations so far.
Amazon, Google and Microsoft have explored ways to expand the reach of their cloud services in India. Microsoft last year signed a long-term deal with telecommunications giant Jio Platforms to provide access to Office 365 and other Microsoft services to millions of businesses at a more affordable cost. Earlier this year, Amazon formed a strategic alliance with Airtel, one of India’s largest telecoms operators. As part of the deal, Airtel will sell AWS to many of its customers. Microsoft now has three data center regions in India, while Google has two.
This is about India’s public cloud market, which is expected to be worth $7 billion by 2024, according to IDC, a market research firm.