Amazon announced $13 billion additional investment in AI and cloud infrastructure expansion in India (Mumbai and Hyderabad datacenters), part of $48 billion five-year commitment.
Amazon has committed $13 billion to expand AI and cloud infrastructure in India, including additional AWS datacenters in Mumbai and Hyderabad. The investment represents a major allocation within Amazon's broader capital strategy, as cloud vendors compete to build compute capacity for the anticipated surge in AI service demand.
The announcement comes as Amazon plans $200 billion in capital expenditure for 2026. This new commitment builds on a $35 billion investment pledged in 2025, bringing Amazon's total investment in India between 2010 and 2030 to more than $88 billion. Beyond cloud infrastructure, this includes new retail fulfillment centers and delivery stations.
The AWS infrastructure will provide startups, enterprises, and government organizations access to custom AI chips, managed AI services, cloud technologies, and developer tools.
Amazon CEO Andy Jassy announced the investment following a meeting with Prime Minister Narendra Modi. "As we grow Amazon in India, our business priorities align with India's priorities of democratizing access to AI, digitizing small businesses, creating jobs, and enabling exports," Jassy said. "We are investing over $48 billion in the coming five years to meet the strong demand across our business in India and to help India achieve these priorities. We are inspired by Prime Minister Modi's vision of a Viksit and Atmanirbhar Bharat—Developed and Self-Reliant India—and we are committed to being a long-term partner in India's growth story."
Jassy characterized the capital investments as a response to a critical inflection point in cloud and AI markets. "When you have shifts that are this momentous, you want to make sure that you invest in such a way that you can pursue the opportunity as broadly for your customers as possible," he told CNBC.
The India expansion follows similar major commitments elsewhere. In January, Amazon announced an $11 billion investment in Georgia, with funds directed toward AWS datacenters in Butts and Douglas counties. In November, Amazon committed up to $50 billion to expand AI and supercomputing capabilities for US government customers, adding nearly 1.3 gigawatts of additional compute capacity across AWS Top Secret, AWS Secret, and AWS GovCloud (US) Regions.
These announcements unfold against a backdrop of shifting US-India trade relations. In July 2025, US President Trump characterized India as a "dead economy," citing the country's energy purchases from Russia in relation to the Ukraine conflict, and imposed retaliatory tariffs under emergency-power laws (IEEPA). The tariffs ultimately fell on US importers rather than Indian exporters. In a significant reversal, US importers and shippers began receiving tariff refunds last month following a Supreme Court ruling that the emergency powers had been exceeded, though US Customs and Border Protection has not released comprehensive data on the number of individual importers who claimed refunds on goods from India.