Amazon Web Services is planning to raise its data centre capacity in India to an estimated 2-3 gigawatts, according to people familiar with the matter. The move is being supported by potential tax incentives and reflects a rapid scaling effort across the companys two Indian infrastructure regions.
The cloud giant has reportedly signed letters of intent with six to eight colocation firms as it accelerates construction and capacity procurement. Named partners include Sify Technologies, Yotta Data Services, NTT Data, CtrlS and Capitaland. The agreements are intended to speed AWSs deployment of additional power and space across Mumbai and Hyderabad.
An executive described the initiative as "among the largest capacity acquisition drives by a hyperscaler," underscoring the scale of the planned expansion. AWS currently operates infrastructure regions in Mumbai and Hyderabad and has been expanding its footprint amid surging demand for cloud and artificial intelligence services.
Earlier, the company announced in January 2025 that it would invest $8.3 billion in its Mumbai cloud region, a project the company said is expected to contribute $15.3 billion to Indias GDP by 2030. Those commitments form part of the broader capacity increase the firm is pursuing through contractual relationships with colocation providers.
The broader market context cited in the report points to a rapidly growing public cloud market in India. Industry estimates referenced in the report value the market at $10.9 billion in 2024, with projections to reach $30.4 billion by 2029. The size and trajectory of that market help explain why hyperscalers and local partners are pursuing significant capacity additions.
From a product and infrastructure perspective, the arrangement hinges on securing sizeable power and facility footprints from third-party operators while leveraging potential fiscal incentives to improve project economics. The strategy combines direct investment in owned regions with capacity procurement from partner colocation firms to meet anticipated demand for compute-intensive workloads, including AI.
Contextual notes: The expansion centers on the Mumbai and Hyderabad regions, involves multiple colocation partners, and builds on a previously announced investment for the Mumbai cloud region. The market figures and GDP impact cited reflect industry estimates and company statements provided in the report.