Amazon has announced additional investments totaling $13 billion to develop artificial intelligence infrastructure and expand Amazon Web Services (AWS) data centers in Mumbai and Hyderabad. Specifically, the corporation plans to establish over 20 new sorting centers and more than 100 delivery stations throughout India by the end of the year.
The company had previously committed to investing over $35 billion into the Indian market by 2030, showcasing its ambition to compete with leading global technology players in the nation’s rapidly growing digital market. The latest service expansions include a significant geographic expansion of Amazon Now express delivery to cover new cities and towns.
Currently, Amazon CEO Andy Jassy is in India on an official visit during which he is meeting with business representatives, company employees, and government officials, including Prime Minister Narendra Modi. This marks Jassy’s first visit as CEO, underscoring the market’s importance for strategic growth, particularly amid increasing demand for data center services driven by AI advancements.
Despite its significant potential, Amazon still trails the local platform Flipkart (under Walmart’s control) in the e-commerce segment of a country with a population of 1.4 billion. Additionally, in the emerging quick-commerce sector, the company is behind local competitors such as Blinkit (Eternal Ltd). This situation motivates Amazon to invest and coordinate efforts to strengthen its position in the quick-commerce segment.
Estimates suggest that Amazon’s total investments in India over the 2010–2030 period will exceed $88 billion, highlighting a long-term strategy to develop and solidify its presence in the Indian market.