Amazon Web Services (AWS) is pursuing one of the largest data center capacity drives by a hyperscaler in India, targeting a long-term expansion of 2 to 3 gigawatts across Mumbai and Hyderabad. According to a report by The Economic Times, AWS has signed letters of intent with six to eight colocation providers, including Sify Technologies, Yotta Data Services, NTT Data, CtrlS, and CapitaLand.
Executives involved in the discussions said AWS is actively securing capacity with several colocation partners that have recently expanded their facilities. The initiative represents one of the most substantial capacity acquisitions by the company since it began investing in self-built data centers in the country.
The expansion aligns with India’s new tax holiday for foreign companies providing global cloud services through local data centers. Announced in the 2026-27 Union Budget, the policy offers tax exemption until 2047, aiming to attract long-term investment while mitigating prior concerns over tax exposure on global income. The incentive provides more than two decades of fiscal clarity, positioning India as a competitive data center hub in Asia.
AWS already operates two key cloud regions in the country—the Asia Pacific (Mumbai) Region launched in 2016 and the Asia Pacific (Hyderabad) Region inaugurated in 2022. In January 2025, the company announced an $8.3 billion investment to expand its Mumbai operations, projected to contribute $15.3 billion to India’s GDP by 2030 and support over 81,000 jobs annually. In December 2025, AWS also signed a framework agreement with the Telangana government to invest $7 billion over 14 years in expanding data center capacity around Hyderabad.
India’s public cloud services market reached $10.9 billion in 2024 and is expected to grow to $30.4 billion by 2029, according to IDC. AWS and Microsoft Azure jointly account for nearly 40% of this market, underscoring the country’s growing role in global cloud infrastructure expansion.
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