The Telangana government has signed an agreement with Amazon Web Services under which the US cloud computing company will invest about $7 billion over the next 14 years to expand its data centre infrastructure in the state, as global technology firms increase capacity to meet rising demand for cloud and artificial intelligence services in India.
The agreement was signed during the Telangana Rising Global Summit held earlier this week. Under the framework, the state government will provide infrastructure support, facilitation measures and regulatory clearances to help AWS scale its data centre operations in and around Hyderabad, according to an official statement issued on Thursday.
India is emerging as a key market for global cloud providers as companies, government agencies and startups increasingly shift data storage and computing workloads online. The expansion of artificial intelligence tools has further increased demand for large-scale data centres, which require long-term investments in power, cooling and connectivity.
AWS launched its Hyderabad cloud region in 2022
AWS launched its Hyderabad cloud region in 2022, its second in India after Mumbai, to cater to data localisation requirements and reduce latency for customers in the southern part of the country.
The company said the planned expansion would strengthen the Hyderabad region’s role in supporting cloud workloads, AI applications and digital platforms across India.
“With the newly announced $7 billion expansion over the next 14 years, the Hyderabad AWS Region will play a central role in powering cloud services, AI, startups, enterprises and government platforms across India,” the statement said.
Chief Minister A Revanth Reddy said the investment reflected growing investor confidence in Telangana’s technology ecosystem. “The scale of this commitment reflects the trust investors now place in our governance, stability and long-term vision,” he said, linking the investment to the state’s broader development goals.
Sandeep Dutta, president of AWS India and South Asia, said the agreement shows the company’s long-term commitment to India’s digital transformation. He said AWS expects the expansion to generate employment, support local suppliers and contribute to skill development in cloud technologies.
“This framework agreement represents our continued commitment to supporting India’s digital transformation and fostering innovation across the region,” Dutta said.
Telangana has positioned itself as a technology and data centre hub, offering policy incentives, power availability and connectivity infrastructure to attract global firms.
Hyderabad already hosts facilities operated by companies such as Microsoft, Google and Oracle, alongside domestic data centre players.
