Amazon ups India bet with fresh $13B AI infrastructure investment

Amazon has announced a substantial investment of $13 billion to enhance its artificial intelligence and cloud operations in India by the year 2030. This announcement came after a meeting between Amazon CEO Andy Jassy and Indian Prime Minister Narendra Modi in New Delhi. The funds will be primarily allocated to increase the data center capacity of Amazon Web Services (AWS) in major cities like Mumbai and Hyderabad. This latest commitment marks Amazon's third significant investment in India within just three years. Earlier in 2023, following discussions between Jassy and Modi, the company pledged $15 billion by 2030, which included $12.7 billion earmarked for AWS. This was preceded by a commitment exceeding $35 billion made in December 2025. Cumulatively, Amazon's investment in India now stands at an impressive $48 billion. While specific details on how this total amount will be distributed across various business operations in India remain unclear, it's common for long-term tech investments to encompass both capital and operating expenses, rather than focusing solely on infrastructure. Amazon's announcement aligns with a broader trend among global tech giants who are increasingly investing in India as a key player for the computing infrastructure essential for powering AI innovations. Notably, Microsoft revealed plans in December to invest $17.5 billion in India by 2029, while Google disclosed its intent to spend $15 billion on establishing an AI hub and data center infrastructure in the country. In addition to its cloud investments, Amazon is also focusing on expanding its retail and logistics network within India. The company aims to open over 20 fulfillment centers and more than 100 last-mile delivery stations this year. Furthermore, Amazon is set to broaden its quick-commerce service, Amazon Now, reaching over 300 cities and towns. This expansion is crucial as Amazon seeks to strengthen its position in India’s competitive quick commerce sector, where it faces rivals like Blinkit, Swiggy’s Instamart, Zepto, and Walmart-owned Flipkart. Just recently, Flipkart announced plans to establish 1,500 micro-fulfillment centers across the nation by the end of 2026.