According to Amazon's Thursday statement, the new investment will go toward expanding its AWS data center footprint in Mumbai and Hyderabad. This latest pledge builds on a $35 billion commitment Amazon made in December 2025, when big tech companies were competing to establish a presence in India.
During a meeting with India's Prime Minister Narendra Modi on Thursday, Jassy highlighted India's importance to Amazon's diverse operations, which include e-commerce, AI, cloud, and entertainment.
Amazon noted that its cumulative investment in India from 2010 through 2030 will total $88 billion. The company plans to leverage its data center footprint to provide Indian clients - from startups to government entities - with tailored AI hardware, AI service management, and robust cloud security solutions.
India's data center industry is one of the fastest-growing globally, with capacity quadrupling since 2019. The government has actively courted tech giants through long-term tax incentives, leading to a surge in investment commitments. Amazon's latest pledge underscores its long-term strategy to capture a share of India's expanding cloud and AI market, which is driven by increasing adoption among startups, enterprises, and government agencies.
"India's DC industry is emerging as one of the fastest growing globally," Nomura said in the report.
Currently, India lacks domestic production of advanced semiconductors and does not possess a large-scale AI foundation model comparable to those being developed globally. The country's data center market is expanding quickly. To spur this growth, the Indian government has provided long-term tax incentives to major international hyperscalers.
In December 2025, India attracted $50 billion in commitments from U.S. big tech firms including Amazon and Microsoft within a single day. Google, another key hyperscaler, is likewise putting $15 billion into building data center capacity for a new AI hub in southern India.
The rapid expansion of India's data center sector reflects a broader national strategy to become a global digital hub. Government policies such as the National Data Centre Policy and state-level incentives have lowered barriers for hyperscalers. Amazon's cumulative $88 billion commitment through 2030 aligns with India's goal of increasing cloud adoption across sectors like fintech, healthcare, and education. Meanwhile, local startups are increasingly relying on AWS for AI training workloads, even as the country works toward developing its own foundational models and semiconductor capabilities.
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