AWS could be set to spend billions on second India cloud data region

AWS Office
(Image credit: Tony Webster / Flickr)

Amazon has announced that it is in the process of creating a new AWS cloud infrastructure region in the Indian state of Telangana. The new AWS Asia Pacific (Hyderabad) Region will provide support to developers, entrepreneurs and existing businesses by allowing them to serve their customers from data centers located within India.

"We are pleased that AWS has chosen Telangana as the location for its second region in India. Hyderabad is an important talent hub for IT professionals and entrepreneurs, and with the increased adoption of cloud computing, we are set to see a transformation in the way businesses in south India harness the power of IT,” said K.T. Rama Rao, Minister for Information Technology, Electronics & Communications, Municipal Administration and Urban Development and Industries & Commerce Departments for the Government of Telangana.

“Combining the unique resources of Telangana with AWS, the world’s leading cloud, will boost economic development, power digital-led innovation, and establish a cloud centre hub for the rest of the country.”

AWS did not disclose how much investment will be required to set up the new cloud region, but estimates indicate that around $2.8 billion will be injected into the area. The new AWS region is expected to be up and running by the middle of 2022.

A growth market

Although the creation of a new cloud region is certain to benefit businesses in the tech hub of Hyderabad, it will provide substantial advantages for Amazon as well. 

India’s data localization laws, which have become more stringent in recent years, could require multi-national firms to store data relating to Indian citizens in domestic data centers – something the new cloud region will help with.

The new region also demonstrates the growing importance of the Indian market. Among the high-profile local tech firms that are moving to AWS are RBL Bank, Bajaj Capital, Freshworks and HDFC Life. 

Across a multitude of industries, the cloud is becoming increasingly important and Amazon is keen to secure market share in countries where this growth is likely to be biggest – including in India.

Via TechCrunch

Barclay Ballard

Barclay has been writing about technology for a decade, starting out as a freelancer with ITProPortal covering everything from London’s start-up scene to comparisons of the best cloud storage services.  After that, he spent some time as the managing editor of an online outlet focusing on cloud computing, furthering his interest in virtualization, Big Data, and the Internet of Things.