AWS Announces Major $7 Billion Investment in Hyderabad Data Centers December 12, 2025 Amazon Web Services (AWS) has solidified a major expansion of its cloud infrastructure in India, signing an agreement with the Government of Telangana to invest $7 billion in data centers in Hyderabad over the next 14 years. This substantial commitment underscores the intensifying competition among global cloud providers to capture a share of India's rapidly growing digital economy and positions Hyderabad as a critical node in the global hyperscale landscape. The agreement, first reported by the Deccan Herald, outlines that AWS will significantly scale its existing cloud infrastructure in the state capital. In return, the Telangana government has pledged a package of facilitation measures and support to expedite the build-out. This investment builds upon AWS's existing footprint in the city, where it launched a cloud region in 2022 and had been in discussions with state officials about expansion as recently as August 2024. Telangana's Chief Minister, A. Revanth Reddy, welcomed the investment, stating, "We are delighted by the extraordinary confidence shown by global leaders like Amazon in Telangana. The scale of this commitment reflects the trust investors now place in our governance, stability, and long-term vision to propel Telangana towards its $3 trillion economy goal." Sandeep Dutta, President of AWS India and South Asia, added, "We look forward to contributing to Telangana’s vision of becoming a global technology hub by creating employment opportunities, supporting local businesses, and enabling a skilled workforce that will drive India’s digital economy forward." The Hyderabad announcement is part of a broader wave of capital expenditure by cloud giants in India. It follows closely on the heels of Amazon's recent pledge to invest $35 billion across all its businesses in the country by 2030, a sum expected to encompass data centers and AI infrastructure. Earlier in 2025, AWS committed $8.3 billion to develop its cloud infrastructure in the AWS Asia-Pacific (Mumbai) Region. The move also aligns with aggressive investments from rivals; Microsoft recently revealed plans to spend $17.5 billion on AI infrastructure in India by 2030, and Google confirmed a $15 billion data center project in neighboring Andhra Pradesh in October 2025. This cluster of multi-billion dollar investments signals a strategic pivot by hyperscalers to localize data infrastructure in key growth markets. For India, it promises to enhance digital sovereignty, reduce latency for domestic users, and stimulate local economies through job creation and ecosystem development. The scale of AWS's latest commitment in Hyderabad highlights the region's rising importance as a data center hub and sets the stage for the next phase of cloud and AI-driven growth in South Asia. Source: datacenterdynamics
AWS Commits $7 Billion to Expand Hyderabad Data Center Infrastructure
