AWS said to seek more data center capacity in India

Amazon Web Services is seeking more data center capacity in India by lining up colocation space in Mumbai and Hyderabad, according to people familiar with the talks.

The company has signed letters of intent with six to eight providers, including Sify Technologies, Yotta Data Services, NTT Data, CtrlS, and CapitaLand, the people said.

AWS runs two cloud regions in India: Mumbai launched in 2016, and Hyderabad launched in 2022.

AWS in January 2025 announced plans to invest US$8.3 billion to build out its Mumbai region, and it estimated the project would add US$15.3 billion to India’s GDP by 2030 and create 81,300 jobs annually.

IDC put India’s public cloud market at US$10.9 billion in 2024 and projected it to reach US$30.4 billion by 2029, with AWS and Microsoft Azure together at about 40% share.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

AWS is building an AI-ready backbone across India

AWS plans $8.3 billion for Mumbai and has committed $7 billion to expand its Hyderabad data center footprint, totaling $15.3 billion in announced investments 1.
Hyderabad’s hyperscale data center plan supports AI/ML-enabled services and broader cloud infrastructure, without explicitly naming high-performance computing 2.
AWS and Tata Communications (an Indian telecom and network services provider) are building a high-capacity network linking Mumbai, Hyderabad, and Chennai for data-heavy workloads such as generative AI and high-performance computing 3.
India’s hyperscale data center market is forecast to grow from $9.51 billion in 2025 to $53.68 billion by 2031 4.

Hyperscaler growth triggers infrastructure and policy challenges

India’s Digital Personal Data Protection Act pushes organizations toward in-country storage and processing, which speeds up sovereign infrastructure investments 4.
Grid congestion near Mumbai can delay new feeders by 12–18 months, leading some developers to look beyond the Mumbai area 4.
Energy demand is driving more renewables. Sify has power purchase agreements (PPAs) totaling 231 megawatts (MW) of solar and wind capacity for its data center portfolio 5.
Sify plans an initial public offering (IPO) for its data center unit, Sify Infinit Spaces, to fund expansion and refinance debt 6.