Amazon Web Services to Build Second Data Center Infrastructure in India for $2.8B

UTC by Bhushan Akolkar · 3 min read
Amazon Web Services to Build Second Data Center Infrastructure in India for $2.8B
Photo: Depositphotos

With the new cloud region in India, Amazon will be expanding its market in the Asia region and further strengthening its stronghold in the country. Amazon AWS already offers its services to some of India’s biggest conglomerates. Inc (NASDAQ: AMZN) has announced its major expansion plans in Asia as its plans to invest $2.8 billion for the second data-center infrastructure for its AWS Cloud service in India. The new Amazon Web Services (AWS) cloud data center will be commissioned in the Indian state of Telangana and ready by mid-2022.

The AWS Regions comprise of Availability Zones – a special technology infrastructure in distinct geographic locations. Each Availability Zones have ultra-low latency networks with independent power, cooling, and physical security. Amazon also said that the new AWS Asia Region is the company’s second data center infrastructure in India.

It further added that the new AWS Asia Pacific (Hyderabad) Region will allow startups, developers, enterprises, government, and other non-profit organizations to get quick access to their servers and run their applications. Besides, there’s another advantage for Amazon in building more cloud regions in India. This move will make it easier for Amazon to comply with India’s data localization policies. K.T. Rama Rao, Minister at the Telangana government said:

“We are pleased that AWS has chosen Telangana as the location for its second region in India. Hyderabad is an important talent hub for IT professionals and entrepreneurs, and with the increased adoption of cloud computing, we are set to see a transformation in the way businesses in south India harness the power of IT. Combining the unique resources of Telangana with AWS, the world’s leading cloud, will boost economic development, power digital-led innovation, and establish a cloud centre hub for the rest of the country.”

Amazon Leading Cloud Market in India

Currently, Amazon is the leader in cloud market services in India. This new move will help further strengthen its position in the Asian market. The Amazon AWS offers services to some of the high-profile businesses in India. Speaking on the developments, Peter DeSantis, Senior Vice President of Global Infrastructure and Customer Support, Amazon Web Services said:

“Businesses in India are embracing cloud computing to reduce costs, increase agility, and enable rapid innovation to meet the needs of billions of customers in India and abroad. Together with our AWS Asia Pacific (Mumbai) Region, we’re providing customers with more flexibility and choice, while allowing them to architect their infrastructure for even greater fault tolerance, resiliency, and availability across geographic locations.”

Amazon is currently making aggressive moves in the Indian market and has planned huge investments ahead. Competitors like Microsoft and Google are also looking to expand their cloud services in India. Microsoft Corporation (NASDAQ: MSFT) has also entered a deal with domestic telecom giant Jio platforms for the matter.

On the other hand, Amazon has entered a strategic alliance with Airtel, India’s other telecom giant, and Jio competitor. Amazon is competing with Reliance Jio on multiple fronts. Amazon is looking to expand massively in India’s retail space in direct competition to Jio retail. The two companies are also fighting a fresh court on the matter of Jio’s acquisition of Future Group.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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