Amazon Web Services is accelerating its growth in India by obtaining more data center capacity in Mumbai and Hyderabad, indicating a stronger effort to meet the increasing demand for cloud and AI, according to reports.

Sources knowledgeable about the development revealed that the firm has entered into letters of intent with multiple colocation providers, such as Sify Technologies, Yotta Data Services, NTT Data, CtrlS, and CapitaLand, aiming to rapidly increase capacity without relying only on its own construction projects.

The decision follows as hyperscalers more frequently combine their own infrastructure with third-party facilities to expand rapidly in high-growth regions such as India.

AWS presently has two cloud regions in the nation — Mumbai, its initial region established in 2016, and Hyderabad, which was introduced in 2022 to accommodate extra workloads and backup requirements. The firm has pledged billions of dollars to India, which includes a previously stated investment of $8.3 billion in the Mumbai area.

The speed is what has altered now. As enterprise cloud adoption increases and AI workloads grow in computational demands, the need for data center capacity has risen significantly. Securing space with various providers enables AWS to react more swiftly to this demand.

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India's cloud sector is growing swiftly, with businesses, startups, and even international AI companies increasingly seeking to store data domestically. Along with AWS, Microsoft Azure stands as a major rival, with both firms holding a significant portion of the market.

The recent capacity increase is also linked to a wider trend towards data localization and reduced latency, particularly as AI applications grow more common.

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