Amazon to invest additional $13 billion in India for data centre expansion as AI race accelerates

Amazon plans to invest an additional $13 billion in India over the next four years, expanding its AI and cloud footprint in the country that has emerged as a key battleground for global tech companies owing to its fast-growing developer base and vast pool of internet and smartphone users.

The announcement comes during Amazon CEO Andy Jassy’s visit to India and follows his meeting with Prime Minister Narendra Modi in New Delhi on Thursday, June 25. The investment will fund an expansion of AWS data centre capacity in Mumbai and Hyderabad, enabling access to Amazon’s custom Trainium chips, AI services, and cloud and developer tools for Indian startups, enterprises, and government organisations.

The $13 billion investment announced on Thursday takes Amazon’s total planned spending on AI and cloud infrastructure in India to over $21 billion between 2026 and 2030.

Amazon’s cumulative investments in India from 2010-2030 stand at over $88 billion, according to the e-commerce giant. In the last 16 years, Amazon has invested $40 billion in India. In 2025, the company announced plans to invest a total of $35 billion in the country between 2026 and 2030 to expand and support its businesses here. However, Amazon has now increased its commitment from $35 billion to $48 billion during the four-year period.

Amid the ongoing AI boom, several major US tech companies have ramped up spending on data centres and cloud computing worldwide in the last few years, with India emerging as a strategic market considering it has one of the world’s largest pools of developers as well as internet and smartphone users.

In December 2025, Microsoft announced a $17.5 billion investment in India, its largest in Asia, to fund new data centres, AI infrastructure, and skilling programes from 2026 to 2029. Other AI giants such as Google, OpenAI, and Anthropic are also looking to strengthen their presence in India by tapping demand for cloud services and AI tools from businesses, startups, and government agencies.

“As we grow Amazon in India, our business priorities continue to align with India’s priorities of democratizing access to AI, digitizing small businesses, creating jobs, and enabling exports. We are investing over $48 billion in the coming five years to meet the strong demand across our business in India and to help the country achieve these priorities,” Amazon CEO Andy Jassy said in a statement.

A great meeting with Mr. Andy Jassy. I welcome Amazon’s record $48 billion investment in India. This will create new opportunities for our youth. At the same time, it shows the growing interest across the world to invest in India!@amazon https://t.co/emr6Dd9Cps

— Narendra Modi (@narendramodi) June 25, 2026

“A great meeting with Mr. Andy Jassy. I welcome Amazon’s record $48 billion investment in India. This will create new opportunities for our youth. At the same time, it shows the growing interest across the world to invest in India!” PM Modi wrote in a post on X.

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More about Amazon data centres in India

Total installed data centre capacity in India currently stands at about 1.2 gigawatts (GW) and is projected to grow fourfold by 2030, according to government estimates.It has only three per cent of global data centre capacity, despite accounting for over 20 per cent of global data generation.

The AWS Regions in Mumbai and Hyderabad will enable customers to securely store their data within India and give them access to the company’s AI and cloud technology including its custom Trainium chips and Amazon Bedrock, the company’s AI inference platform, according to Amazon.

The company also said Amazon Kiro, its AI agent-driven Integrated Development Environment (IDE), and its AI-powered Quick assistant are seeing rapid adoption among Indian developers and IT workers.

It further highlighted the National Health Authority, Government e-Marketplace, Apollo Tyres, Delhivery, Physics Wallah, Axis Bank, HDFC Bank, and many others using AWS to build, train, and deploy AI workloads at production scale. Amazon has further committed to support over 3.8 million jobs, and enable AI benefits for 15 million small businesses and four million government school students by 2030.

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Quick commerce bet

Beyond AI and cloud computing, Amazon is looking to accelerate the rollout of its quick commerce offering, Amazon Now, in India. Currently, Amazon Now is available in 15 cities and operates over 500 micro-fulfillment centres. During his India visit, Jassy toured an Amazon Now micro-fulfilment centre in Mumbai on Wednesday, June 24.

The company plans to expand the service to 100 cities with more than 1,000 micro-fulfillment centers. It plans to launch more than 20 new fulfillment centers and over 100 new last mile delivery stations this year. Amazon also has plans to expand its assortment beyond groceries into categories such as apparel, electronics, and home products.