Amazon Web Services (AWS) is reportedly looking at investing an additional $2 billion in data centers in Telangana, India.

First reported by The India Economic Times, the cloud provider is reportedly in discussions with the Indian state about expanding its data center capabilities.

Telangana Industries and IT Minister Duddilla Sridhar Babu told ET: “Amazon has shown interest in investing $2 billion in data centers across Telangana, not limited to just Hyderabad. In our discussions, they (AWS) have conveyed their plans to channel this investment over the next 4-5 years, focusing specifically on data center development.”

AWS launched its Hyderabad cloud region in November 2022. Plans for the development region were revealed in 2020 with the company expecting to invest $2.8bn in the city, following the launch of a Mumbai data center region in 2016. The region has three availability zones.

Plans for expanding the Hyderabad region emerged in August 2024, following Minister Sridhar Babu's visit to California to meet with AWS. This is the first time that a number has been provided, as well as information that the investment could be outside of Hyderabad in the wider Telangana state.

Sridhar Babu added to the ET that the expansion is being primarily driven by artificial intelligence (AI).

“Amazon recognizes this potential and is eager to invest substantially in the region. We are committed to making a compelling case by providing them with diverse location options across Telangana, solidifying our state as the preferred destination for their data center expansion,” he said.