Amazon will invest about $2.8 billion in Telangana to set up a new AWS Cloud region in the southern state of India, a top Indian politician announced on Friday.
The investment will allow Amazon to launch an AWS Cloud region in Hyderabad by mid-2022, said K. T. Rama Rao, Minister for Information Technology, Electronics & Communications, Municipal Administration and Urban Development and Industries & Commerce Departments, Government of Telangana.
The new AWS Asia Region will be Amazon’s second infrastructure region in India, Amazon said ina press release. It did not disclose the size of the investment.
“The new AWS Asia Pacific (Hyderabad) Region will enable even more developers, startups, and enterprises as well as government, education, and non-profit organizations to run their applications and serve end users from data centers located in India,” the e-commerce giant said.
But there is a lot in it for Amazon as well. Jayanth Kolla, chief analyst at consultancy firm Convergence Catalyst, told TechCrunch that by having more cloud regions in India, it will be easier for Amazon to comply with the nation’s data localization policy. This compliance will also help Amazon, which currently leads the cloud market in India, attract more customers.
AWS has courted several high-profile businesses as customers in recent years. Some of these include automobile giant Ashok Leyland, life insurance firm Aditya Birla Capital, edtech giant Byju’s, Axis Bank, Bajaj Capital, ClearTax, Dream11, Edelweiss, Freshworks, HDFC Life, Mahindra Electric, Ola, Oyo, Policybazaar, RBL Bank, redBus,