Amazon.com Inc. (AMZN) just announced it's pouring over $35 billion into India's artificial intelligence and cloud computing infrastructure through 2030, revealing the commitment Wednesday at the Amazon Smbhav Summit in New Delhi. It's the latest salvo in the tech industry's race to plant flags in one of the world's fastest-growing digital markets.
Betting Big on India's Digital Future
This isn't Amazon's first rodeo in India. The company has already invested nearly $40 billion in the country, and this new commitment represents a significant expansion of that footprint. The focus areas are straightforward: AI-powered digitization, export acceleration, and job creation, all aligning neatly with India's broader ambitions to develop a world-class domestic AI ecosystem.
The numbers Amazon is projecting are ambitious. The company expects this initiative to generate 1 million new jobs by 2030, boost exports to $80 billion (four times current levels), and bring AI advantages to 15 million small businesses across India. Whether those projections materialize remains to be seen, but they signal Amazon's confidence in India's potential as both a market and a technology hub.
The Tech Giants' India Rush
Amazon isn't alone in eyeing India's AI opportunity. According to a Boston Consulting Group report from June, the Indian AI market is expected to more than triple to surpass $17 billion by 2027. That kind of growth trajectory has every major tech player sharpening their pencils.
Just Tuesday, Microsoft (MSFT) announced its largest-ever Asia investment: $17.5 billion spanning 2026 through 2029 in India. The investment will focus on cloud capacity, AI infrastructure, skills development, and sovereign digital capabilities. The announcement came after CEO Satya Nadella met with Prime Minister Narendra Modi, underscoring the strategic importance both sides place on the partnership.
Meanwhile, Intel (INTC) and India's Tata Group signed a memorandum of understanding to deepen their semiconductor partnership, exploring chip manufacturing and advanced packaging at Tata Electronics' upcoming facilities. And back in October, Alphabet Inc.'s Google (GOOGL) (GOOG) announced a $15 billion investment to build an AI data center in India, its largest commitment to the country to date.
The Capital Expenditure Question
All this investment comes with a price tag, and JPMorgan is watching Amazon's spending carefully. The investment bank expects Amazon's capital expenditures to nearly double from fiscal 2024 levels as Amazon Web Services ramps up spending on GPUs, networking infrastructure, and power systems to support surging AI demand.
Amazon does have financial firepower. The company sits on approximately $84 billion in cash against $58 billion in debt, giving it a comfortable liquidity cushion. But JPMorgan warns that accelerating AI and data center investments, potentially reaching $150 billion by fiscal 2026, could strain even Amazon's substantial resources.
It's a balancing act. Amazon needs to invest heavily to maintain its competitive position in cloud computing and AI, but the scale of spending required is unprecedented. The company is essentially betting that AI demand will justify the massive infrastructure buildout underway.
Price Action: On a year-to-date basis, Amazon stock has climbed 3.50%. On Tuesday, shares rose 0.45% to close at $227.92.