Amazon Web Services (AWS) is set to make a landmark investment of INR 60,000 Cr (approximately $7 Bn) in Telangana, dramatically expanding its data centre capabilities in Hyderabad. This strategic move underscores the state’s growing prominence as a critical hub for cloud computing and artificial intelligence infrastructure in India.
The investment comes after a high-profile meeting between Telangana’s chief minister Revanth Reddy, state industries minister D Sridhar Babu, and Amazon’s top leadership during the World Economic Forum’s annual conference in Davos, Switzerland. State authorities have already approved AWS’s request for additional land to support this ambitious expansion plan.
This substantial commitment is part of a broader tech investment landscape in Telangana. The state has simultaneously secured additional investments from Tillman Global Holdings (INR 15,000 Cr for a 300 MW data centre) and Blackstone (INR 4,500 Cr for a 150 MW data centre), bringing the cumulative investment to INR 80,000 Cr.
“AWS’s expansion in Hyderabad will play a crucial role in supporting cloud services growth in India, particularly for AI-driven technologies,” noted a senior official from the chief minister’s office. The investment builds on AWS’s existing infrastructure, which currently includes three operational data centres in Telangana and a previous investment of around $1 Bn.
The timing is particularly significant. In September 2024, Amazon had already announced plans to inject an additional $2 Bn into Telangana to expand its data centre capabilities. This latest commitment represents a substantial acceleration of those earlier plans, highlighting the strategic importance of the region for cloud and AI technologies.
AWS’s aggressive expansion isn’t happening in isolation. Other tech giants are also rapidly developing data centre capabilities in India. Google has signed memorandums of understanding with real estate developers for cloud computing services, while Oracle has announced plans to double its investments in the country, with a specific focus on AI and data infrastructure.
Key Investment Statistics:
- Total AWS Investment: INR 60,000 Cr (≈$7 Bn)
- Existing AWS Investment in Telangana: $1 Bn
- Additional State Investments:
- Tillman Global Holdings: INR 15,000 Cr (300 MW)
- Blackstone: INR 4,500 Cr (150 MW)
- Cumulative Tech Infrastructure Investment: INR 80,000 Cr
For the Tamil Nadu startup ecosystem, this development signals several critical implications. While the investment is centered in Telangana, it represents a broader trend of massive tech infrastructure development in South India. The substantial data centre investments could attract more global tech companies, create significant employment opportunities, and potentially stimulate technology innovation across the region.
“This isn’t just about physical infrastructure,” commented a technology ecosystem analyst. “These investments create a robust foundation for AI, cloud computing, and emerging technologies that can benefit startups across South India.“
