Amazon Web Services (AWS), the cloud arm of the ecommerce giant Amazon, is reportedly in discussions to invest an additional $2 billion in Telangana to bolster its data centre operations in the state. This proposed investment would be spread over the next 4-5 years, with a particular focus on developing data centre infrastructure.
Telangana’s industries and IT minister, Duddilla Sridhar Babu, confirmed the discussions, saying, “Amazon has shown interest in investing $2 billion in data centres across Telangana, not limited to just Hyderabad.” He added, “In our discussions, they (AWS) have conveyed their plans to channel this investment over the next 4-5 years, focusing specifically on data centre development.”
Telangana, already a growing tech hub, is keen to attract multinational corporations (MNCs) from various sectors, including hospitality, defence, and aerospace. Babu said the state is “going all out” to ensure MNCs set up or expand their operations in Telangana.
In late August, the Marriott Group began working to establish its first Global Capability Centre (GCC) in Hyderabad, marking another significant investment in the state’s growing tech ecosystem.
“Our strategy goes beyond attracting core technology companies. We aim to persuade large multinationals from diverse sectors to make Telangana their tech hub,” Babu added.
Competing for Global Investments
The announcement from AWS comes amid stiff competition among Indian states to attract global tech investments. Karnataka, under the leadership of its information technology and biotechnology (IT/BT) minister, Priyank Kharge, expects to draw $6.2 billion in investments from sectors like biotechnology, AI, semiconductors, and healthtech.
Meanwhile, Tamil Nadu Chief Minister M. K. Stalin recently visited the United States, where he held discussions with tech giants like Microsoft, Apple, and Google. Tamil Nadu’s government also recently inked a deal with Google to explore manufacturing ‘Made in India’ Pixel 8 smartphones, develop skill programs, and support MSMEs in building scalable AI solutions.
AWS Data Centres in India
AWS has already made significant strides in India, with two operational data centre infrastructures: one in Mumbai and another in Hyderabad. The second AWS Cloud region in Hyderabad, which was established in mid-2022, consists of three availability zones and came at an investment cost of INR 20,761 crore (approximately $2.77 billion).
The proposed additional $2 billion investment would further solidify Telangana’s position as a major data centre hub, fueling growth in cloud computing and data infrastructure across the state.