Amazon plans on investing around $2.8 billion in Telangana in Southern India to set up a new AWS Cloud region in India.

This investment will allow Amazon to launch an AWS Cloud region in Hyderabad by mid-2022, according to K.T. Rama Rao, Minister for Information Technology, Electronics & Communications in Telangana.

This new investment will be Amazon’s second infrastructure region in India. It will support the growth of India's e-commerce sector by offering support to even more startups, developers, and enterprises as well as the government, education, and non-profit organizations. The e-commerce giant will enable Indian companies to run their applications and serve end-users from data centers located in India.

In addition to Amazon, Google and Microsoft have expanded the reach of their cloud services in India's growing market. Microsoft today has three data center regions in India, while Google has two.

In a long-term deal with Jio Platforms, a telecom giant, Microsoft offered access to Office 365 and other services to millions of Indian businesses at affordable rates. Similarly, Amazon has also formed strategic alliances in the past, especially with Airtel, one of the largest telecom operators in India, to sell AWS to many of its customers.

While India's growing internet market attracts new investments in cloud computing, it offers inspiration to other businesses in the region to bring more innovation to their existing infrastructures.