Amazon Doubles Down on India With $13 Billion AI Push - and Indian IT Is on a Deal-Making Tear

India is cementing its position as one of the world's most coveted tech investment destinations - and two stories this week make that case more powerfully than ever.

Amazon has announced plans to invest an additional $13 billion to expand AI and cloud infrastructure in India, bringing its total committed investment in the country to $48 billion between 2026 and 2030. The announcement came following a high-profile meeting in New Delhi between Amazon CEO Andy Jassy and Prime Minister Narendra Modi. 

The fresh funds will be channelled into expanding AWS data center capacity in Mumbai and Hyderabad, with Amazon aiming to provide Indian startups, enterprises, and government organisations with access to custom AI chips, managed AI services, and secure cloud technologies.

This is not Amazon's first major pledge to India - nor its second. The announcement marks Amazon's third major commitment for India in as many years. In 2023, the company said it would invest $15 billion by 2030, followed by an over $35 billion commitment in December 2025.

What's driving the acceleration? India's data center capacity has risen to approximately 1.6GW in 2025, up from 350MW in 2019 - implying a 29% compound annual growth rate, outpacing the global average of 20%. The Indian government has also sweetened the deal for hyperscalers, offering tax exemptions to foreign cloud providers on services sold overseas if those workloads are run from Indian data centers.

Since launching in India, Amazon has digitised 12 million small businesses, enabled over $20 billion in cumulative e-commerce exports, and supported 2.8 million jobs, while training over 10 million Indians on cloud skills. Looking ahead, the company has pledged to support 3.8 million jobs and enable $80 billion in cumulative exports through 2030, while extending AI benefits to 15 million small businesses and providing AI education to 4 million government school students.

Beyond cloud and AI, Amazon is also expanding its domestic retail and logistics footprint, planning to open more than 20 fulfilment centres and over 100 last-mile delivery stations this year, while rolling out its quick-commerce service, Amazon Now, to more than 300 cities and towns.