Amazon Web Services (AWS) is planning a significant expansion of its data centre infrastructure in India, targeting an additional 2–3 gigawatts of capacity as it looks to capitalize on government-backed tax incentives. The development, reported on March 2026, highlights India’s growing importance as a strategic hub for cloud computing and artificial intelligence workloads.
The expansion is expected to focus primarily on key data centre markets such as Mumbai and Hyderabad, where AWS already operates major cloud regions. The company has reportedly signed letters of intent with six to eight colocation providers, including Sify Technologies, Yotta Data Services, NTT Data, CTRL’s, and CapitaLand, as part of its effort to secure large-scale infrastructure capacity.
This move is being driven in part by favourable policy measures introduced by the Indian government, including long-term tax incentives for data centre and cloud investments. These incentives are aimed at attracting global hyperscale’s and boosting domestic digital infrastructure, especially as demand for AI computing and cloud services continues to surge.
AWS already operates two major infrastructure regions in India, with its Mumbai region launched in 2016 and Hyderabad region in 2022. The company had earlier committed to investing $8.3 billion in its Mumbai cloud region by 2030, and the new capacity expansion plan signals an even larger long-term commitment to the Indian market.
Industry estimates suggest that India’s public cloud market, valued at $10.9 billion in 2024, is expected to grow rapidly to $30.4 billion by 2029, driven by a compound annual growth rate of 22.6%. AWS, along with Microsoft Azure, currently holds a dominant share of around 40% in this market, making infrastructure expansion critical to maintaining its leadership.
The planned capacity addition of 2–3 gigawatts represent one of the largest infrastructure expansion efforts by a global cloud provider in India. It also reflects the increasing importance of data centres in supporting AI applications, enterprise digital transformation, and the broader digital economy. As competition intensifies among hyperscale’s, AWS’s aggressive investment strategy positions it to capture future growth in one of the world’s fastest-growing cloud markets.
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