Amazon expands investment in India with $13 billion worth of AI infrastructure investment

Amazon said on Thursday it would invest an additional $13 billion to expand its AI and cloud presence in India by 2030.

The new investment, announced after Amazon CEO Andy Jassy met Indian Prime Minister Narendra Modi in New Delhi, will fund expansion of Amazon Web Services’ data center capacity in Mumbai and Hyderabad.

The announcement marks Amazon’s third major commitment to India in as many years. After Jassy and Modi’s meeting in 2023, the company said it would invest $15 billion by 2030, including $12.7 billion in Amazon Web Services. This was followed by a commitment of more than $35 billion in investment by December 2025. The company’s domestic investment commitments currently total $48 billion.

Amazon did not detail how the total $48 billion would be deployed across its India operations. Long-term investments by technology companies typically include both capital and operating spending, rather than new infrastructure spending.

Amazon’s announcement follows a wave of investment from global technology companies that are confident India will become a major hub for the computing infrastructure needed to power artificial intelligence products. Microsoft announced last December that it would invest $17.5 billion in India by 2029, and Google announced in October that it would invest $15 billion in building AI hubs and data center infrastructure in India.

India has also attracted billions of dollars in commitments for data center projects from investors including Australia’s AirTrunk, the Canada Pension Plan Investment Board’s CPP Investments, and domestic conglomerates Reliance Industries and Adani Group.

New Delhi has tried to attract more investment through policy incentives, including tax exemptions for foreign cloud providers for services sold abroad if those workloads run in Indian data centers.

Amazon is also investing in domestic retail and logistics networks. The company plans to open more than 20 fulfillment centers and 100 last-mile delivery stations this year, and this week detailed plans to expand its quick commerce service, Amazon Now, to more than 300 cities and towns across the country.

The expansion comes as Amazon seeks to secure its presence in India’s crowded rapid commerce market, where it competes with Eternal-owned Blinkit, Swiggy’s Instamart, Zepto and Walmart-owned Flipkart. Earlier this week, Flipkart said it plans to open 1,500 small fulfillment centers across the country by the end of 2026.

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