Synopsis
AWS is targeting a long-term scale-up to 2-3 gigawatts of capacity after the government declared a 20-year tax holiday for cloud companies. India’s current data centre capacity is expected to increase to 10 gigawatts by 2030 from 1.4 gigawatts at present.“AWS is actively locking in capacity across major colocation providers that have recently expanded,” an executive involved in the discussions told ET on condition of anonymity. “This is among the largest capacity acquisition drives by a hyperscaler, after they started investing in self-builds.”
AWS mainly hosts two infrastructure regions in India. The Asia Pacific (Mumbai) Region (apsouth-1) was its first data centre in India, launched in 2016. The Asia Pacific (Hyderabad) Region (ap-south-2) was launched in 2022, providing additional capacity and disaster recovery options. In January 2025, AWS announced plans to invest $8.3 billion in building its Mumbai cloud region.
The project is expected to add $15.3 billion to India’s gross domestic product by 2030 and create 81,300 jobs annually, it said at the time. India’s public cloud services market revenue totalled $10.9 billion for 2024, according to research firm International Data Corporation. It is expected to reach $30.4 billion by 2029, increasing at a compound annual growth rate of 22.6% during 2024-29. AWS and Microsoft Azure, the two largest vendors, together command a 40% market share.
In October last year, ET reported that artificial intelligence (AI) firm Anthropic was exploring data residency options in India through partnerships with AWS. As of now, enterprises can access Anthropic’s Claude models in India via Amazon Bedrock and Google Cloud Vertex AI.
