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Amazon to spend $4.4b in India as it adds second AWS region

Meanwhile, Microsoft eyes subcontinent for cloud growth

On Monday, AWS launched a new infrastructure region in Hyderabad with three availability zones, making it the second region for the datacenter clusters in India.

"The launch of the AWS Asia Pacific (Hyderabad) Region supports India's digital transformation and is part of our long-term investment in the country since opening our first office in 2011," said AWS veep of Infrastructure Services Prasad Kalyanaraman.

The IT minister in Hyderabad's home state of Telanganga said the approximately $4.4 billion investment would strengthen the state's "position as a progressive datacenter hub in India." That $4 billion will be spent over the period stretching up to 2030, with the figure including DC construction, facilities, and labor costs as well as "purchases of goods and services from regional businesses."

The Hyderabad region has been in the works since late 2020. AWS claimed the investment would create over 48,000 full-time jobs annually at externally businesses in the AWS supply chain – like construction, facility maintenance, engineering, telecommunication, and more. The company also said the construction and operation associated with the region should add about $7.6 billion to the subcontintent's GDP by 2030.

India's other AWS region opened in Mumbai in June 2016.

The new region brings AWS up to 96 availability zones across 30 geographic regions. Fifteen more availability zones and five more AWS regions are in the works in Australia, Canada, Israel, New Zealand, and Thailand.

Comparatively, Google Cloud has regions in Delhi and Mumbai. Microsoft Azure has regions in Pune and Chennai. A third is coming soon in Hyderabad.

Microsoft is also reportedly eyeing up India's demand for cloud products, seeing it as a "massive growth market."

Microsoft's Rohan Kumar, corporate vice president of Azure Data, told The Economic Times growth is streaming in from the development of new cloud-native applications and legacy storage migration.

"The percentage of our consumption that's coming out with a lot of these new workloads is higher in India," said Kumar.

Kumar cited a boom in software and large companies building superapps as being a strong market segment for Microsoft in India. ®

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