Amazon Web Services to invest $2.77 billion in Telangana to set up data centers

Amazon Web Services
Amazon Web Services to invest $2.77 billion in Telangana to set up data centres

Hyderabad Cloud will join the current Mumbai region and provide consumers with much greater resilience to sensitive cloud workloads, lower latency and enhanced enforcement capabilities.

NEW DELHI / HYDERABAD: Amazon Web Services ( AWS) revealed on Friday the establishment of its second data centre area in India in Telangana, which will be operational by mid-2022, and will see a tech giant spending about Rs 20,761 crore.

Though AWS did not comment on the investment specifics, Telangana IT and Industry Minister KT Rama Rao tweeted that AWS would spend Rs 20.761 crore (USD 2.77 billion) to set up several data centres in the state.

“Happy to announce the biggest FDI in the history of Telangana! After a series of meetings, AWS has finalised investment of Cr? 20.761 ($2.77 billion) to set up several data centres in Telangana. The @AWSCloud Hyd Area is scheduled to be launched by mid-2022,” he tweeted.

In a quote, Rao said that AWS is investing in the creation of an AWS Area with three Availability Zones (AZs) in the province.

AZs consist of several data centres in different locations within a single area that are planned to be operationally independent of each other.

On his visit to Davos earlier this year, the Minister met with officials from AWS and then arrived at the closing of the investment in a swift manner, the statement noted.

In a virtual briefing, AWS said the new ‘AWS Asia Zone’ in Hyderabad will consist of three AZs at release and will join the current nine AWS regions and 26 AZs across Asia in India, Australia, Greater China, Japan, Korea and Singapore.

“The new AWS Asia Pacific (Hyderabad) area will allow many more entrepreneurs, start-ups and companies, as well as government, education and nonprofit organizations to operate their apps and support end-users from data centres located in India,” said Amazon Internet Services President Commercial Company (AWS India and South Asia) Puneet Chandok.

He added that the expansion would “fix the long-term capacity needs of a growing market like India” for the company and allow its customers to design their networks for greater variability, lower latency, minimise costs and transfer even more sensitive workloads to the AWS cloud.

Globally, AWS has 77 AZs across 24 infrastructure regions with going to start 15 more AZs and five more AWS regions in India, Indonesia, Japan, Spain and Switzerland. This segment is expected to grow stronger in the coming years, powered by data localization requirements in different industries, including financial services.

In the data infrastructure sector, AWS needs to compete with global giants like Microsoft and Google.

“Our goal in India is to inspire builders and businesses to create a better India … we want to be a force to drive India forward, and we’re continuously working towards this … we haven’t been here in India for a year or two, but we’ve been developing and investing in India for a long time,” Chandok said.

He added that companies around the world and in India are switching to a cloud-based platform to increase mobility, access the cloud’s almost infinite scalability, boost stability and security, and minimise costs.

“AWS has the highest global technology footprint with 24 countries, 77 availability zones with one or more data centres and 220 plus points of presence and this footprint is gradually growing at a significant pace,” he added.

AWS launched its ‘Mumbai Zone’ in June 2016 and extended its offerings to include the third AZ in May of last year to promote rapid customer growth. The company has extended its services across border locations in Bengaluru, Chennai, Hyderabad, Mumbai, New Delhi and Kolkata, which operate in conjunction with the Mumbai area.

The opening of the Hyderabad region would provide AWS customers with lower latency rates across southern India. Indian organisations-from start-ups to companies and the public sector can have the additional infrastructure to exploit services and emerging technologies, including computation, storage, analytics, artificial intelligence, databases, the Internet of Things ( IoT) and machine learning.

AWS clients in India include Ashok Leyland, Aditya Birla Capital, Axis Bank, Bajaj Capital, ClearTax, Dream11, Druva, Edelweiss, Edunext, Extramarks, Freshworks, HDFC Life, Mahindra Electric, Ola, Oyo, Policybazaar, Quantela, RBL Bank, RedBus, Sharda University, Swiggy, Tata Sky, YuppTV, Zerodha, among others.

Government departments, educational institutions and non-profit organisations, including the Traditional Support Centers (CSCs), use AWS services.

AWS continues to invest in the growth of local developers, students and the next generation of IT leaders in India through programmes such as AWS Academy and AWS Educate.