Amazon Allocates $13 Billion for AI Infrastructure in India

US tech giant Amazon has announced an additional $13 billion investment to expand the artificial intelligence (AI) and cloud technology ecosystem in India. These funds will be directed toward developing digital infrastructure in the country by 2030. The decision was made following a meeting between Amazon CEO Andy Jassy and Indian Prime Minister Narendra Modi. This was reported by Techcrunch.com news reports.

The new investment package will primarily serve to increase the capacity of Amazon Web Services (AWS) data centers in Mumbai and Hyderabad. This is Amazon's third major financial commitment within the last three years. The total amount of investments Amazon plans to bring into India has now reached $48 billion.

The Global Tech Race and India's Role

This move by Amazon indicates intensifying competition among global tech giants to turn India into an AI hub. Previously, Microsoft announced $17.5 billion by 2029, and Google announced $15 billion for its AI hub and infrastructure. The Indian government is also actively attracting investments by introducing tax incentives for foreign cloud service providers.

Experts believe that such large investments involve not only the construction of new buildings but also long-term operational costs and the creation of high-tech jobs. With its massive population and rapidly developing digital economy, India is becoming an ideal ground for the computing infrastructure necessary to power AI products.

Expansion of Logistics and Retail Networks

Not limiting itself to cloud technologies, Amazon is also strengthening its internal retail and logistics network. The company plans to open more than 20 large sorting centers and over 100 delivery points this year. Additionally, the Amazon Now rapid delivery service is expected to launch in more than 300 cities and towns across the country.

In this regard, Amazon is engaged in serious competition with local and international rivals. In the quick commerce segment of the market, the following companies are the main competitors:

• Blinkit (a service owned by Eternal);
• Swiggy's Instamart project;
• the Zepto startup;
• Flipkart (a giant part of Walmart).

It is worth noting that Flipkart, in turn, aims to open 1,500 small logistics centers across the country by the end of 2026. The new investments made by Amazon will allow the company to strengthen its position in this fierce competition.