AWS estimates the investment will support 14,000 jobs annually. Credits: Jeff Halstead/Icon Sportswire via Getty Images.

US-based Amazon Web Services (AWS) has announced plans to expand its data centre operations in Hyderabad, Telangana, India.

AWS plans to develop a new hyperscale data centre for artificial intelligence (AI) and machine learning (ML) services.

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Telangana’s chief and IT ministers recently held successful discussions with a delegation from the company led by Kerry Person, AWS’s Data Center Planning and Delivery vice president.

The ministers from Telangana have been meeting CEOs and business groups, inviting them to invest in Hyderabad. They have concluded the US tour having secured INR 31,500 Cr ($3.76bn) in investments.

AWS has a strong presence in Hyderabad with three operational data centres. It is keen to expand its existing data centre facilities and workforce in the region.

Person said: “I am excited about the opportunity to further expand our cloud infrastructure in Hyderabad as an integral component of AWS’s strategy in India. We expect the AWS Region in Hyderabad to play a crucial role in supporting growth in cloud services. AWS is committed to contributing to Telangana’s digital ambitions, empowering our customers and partners across the state. We have an aim to drive towards India’s trillion-dollar digital economy goal.”

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Sridhar Babu, Telangana IT industries minister added, “Our talks with Amazon were extremely positive and successful. We assured the corporation that we would provide them with the best incentives and complete support. We expect a huge expansion of their presence in our state.”

AWS, in 2024, has been on a major expansion drive. Earlier this year, it invested $5.3bn for Saudi Arabia’s infrastructure region. Before that, it announced a $5bn investment in Mexico data centres and a $15bn cloud computing expansion in Japan.

Hyderabad continues to be a popular FDI destination. Recently, biotech giant Amgen announced a new site in the state and IT consultancy Cognizant announced a new facility.