AWS plans $2.77 bn investment in setting up Cloud centers in India

Amazon Web Services (AWS) will invest $2.77 billion to set up an AWS Region with three Availability Zones (AZs) in Hyderabad, according to Telangana IT and Industries Minister K T Rama Rao.
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The AWS Asia Pacific (Hyderabad) Region is expected to start operations by mid-2022. The AZs consist of multiple datacentres in separate locations within a single region.

Amazon’s data centre push in the country comes in the wake of tightening localisation norms and increasing demand for cloud services due to the surge in digitisation.

The Hyderabad region will be AWS’ second data centre region after Mumbai and its eleventh region in Asia. It opened the Mumbai region in 2016. Major cloud service players such as Microsoft and Oracle too have expanded their India operations.

Oracle opened its second datacentre in India in Hyderabad in June this year.

“This investment from AWS is going to be the largest foreign direct investment that the State had attracted since its inception and will act as a strong anchor for attracting other technology investments,” the Minister said announcing the AWS investment.

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.”

The three datacentres will be independent of one another with independent power, cooling, physical security, and connections via a low-latency network.

The new AWS Asia Pacific (Hyderabad) Region will enable developers, start-ups, and enterprises as well as government, education, and non-profit organisations to run their applications and serve end-users from data centres located in the country.

There has been a significant increase in the adoption of cloud. “Digitisation and deployment of artificial intelligence and machine learning is resulting in generation of voluminous data,” Hyderabad Software Enterprises Association (HYSEA) President Bharani Kumar Aroll said.