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Amazon to invest $13B in India as AWS and AI demand accelerates

Amazon has announced plans to invest an additional $13 billion in India to expand its artificial intelligence and cloud infrastructure, taking its total planned investment in the country to $48 billion between 2026 and 2030.

The fresh commitment builds on the company’s previously announced $35 billion investment across its India businesses in December 2025.

The company said the expansion is aimed at giving startups, enterprises, and government organisations access to custom AI chips, managed AI services, secure cloud technologies, and developer tools.

The announcement comes as Amazon steps up its long-term investment plans in India across cloud, ecommerce, and logistics, while also pushing deeper into AI-led services and infrastructure.

Cloud and AI expansion at the centre

Amazon said the new investment will primarily support AI and cloud expansion in India.

The company plans to increase AWS data centre capacity in Mumbai and Hyderabad as demand rises from businesses, startups, and public sector organisations looking to build and scale AI applications.

The investment reflects Amazon’s broader push into AI infrastructure globally, a strategy Amazon CEO Andy Jassy has also linked to the need to spend aggressively during what he has described as a major technology shift.

E-commerce and logistics network to expand further

Alongside AI and cloud spending, Amazon said it will continue investing in the operations network that supports its e-commerce and quick commerce businesses in India.

The company plans to launch more than 20 new fulfilment centres and over 100 new last-mile delivery stations this year.

It said the expansion is intended to speed up deliveries across the country, particularly in tier 3 and tier 4 cities.

Amazon said its India operations network already serves customers in every pin code in the country.

Amazon also highlighted “Sammaan”, a programme aimed at supporting delivery associates through scholarships for their children, access to government benefits and financial inclusion programmes, insurance coverage, and on-road safety measures.

The company said a portion of its recently announced $300 million investment in operations and associate well-being in India will be directed towards scaling these initiatives.

Broader India targets and economic impact

Amazon said its cumulative investments in India from 2010 to 2030 now stand at more than $88 billion.

According to the company, it has digitised 12 million small businesses in the country, enabled more than $20 billion in cumulative ecommerce exports, supported 2.8 million jobs, and trained over 10 million Indians in cloud skills.

Through 2030, AMZN said it will focus on AI-led digitisation, export growth, and job creation.

The company said it has committed to supporting 3.8 million jobs, enabling $80 billion in cumulative exports, extending AI benefits to 15 million small businesses, and providing AI education to 4 million government school students.

Prime Day and sustainability push

The announcement comes alongside a busy period for Amazon globally and in India.

AMZN this week launched its 12th annual Prime Day event, a four-day shopping campaign spanning more than 35 countries.

The event is significant for the company because it is one of the biggest moments on the retail calendar and offers insight into consumer spending trends.

This year also marks the first time since 2021 that Prime Day is being held in the second quarter.

It is also the first major retail event since Amazon introduced its AI-powered shopping assistant, Alexa for Shopping, in May.

Meanwhile, Amazon recently said it had become water positive in India ahead of its 2027 target.

The company said it now returns more water to communities than it uses across its direct operations in the country, including offices, fulfilment centres, and data centres.

The update comes as major technology companies face increasing scrutiny over the environmental impact of expanding data centre infrastructure, particularly as AI-related investments continue to accelerate.

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