T’s largest FDI

Tech giant Amazon has given Telangana an early Diwali gift by bringing in what is the state’s single largest foreign direct investment pegged at $2.77 billion (Rs.20,761 crore).

The blockbuster investment will be pumped in by the company’s cloud-based service, Amazon Web Services’. It will set up its second Asia Pacific Region centre at Hyderabad after Mumbai. This is the 11th in the APAC region after Australia, Greater China, Japan, Korea and Singapore.

While Amazon did not divulge investment details, Telangana’s IT & industries minister KT Rama Rao tweeted that it was the “largest FDI in the history of Telangana” to set up multiple data centres in the state. He also tweeted the amount.

However, if one takes into account the operating expenditure of the project as well then the total investment by Amazon in the project could be in the region of Rs.25,000 crore, top Telangana government officials said. Sources added that the proposed AWS region at Hyderabad will have three availability zones spread over 130 acres at Shamshabad, Chandanvelli and Maheshwaram, and is slated to become operational by mid-2022. It is expected to create more than 1,200 jobs, government officials said.

The availability zones will house multiple data centres that are engineered to be independent and have their own power, cooling, security and connections via a low latency network.

Puneet Chandok, (president) commercial business, Amazon Internet Services Private Limited, AWS India and South Asia, said they zeroed in on Hyderabad because the city has a vibrant startup and enterprise ecosystem that demands the best cloud infrastructure and availability of skilled talent. It also offers good connectivity to four of the largest Indian cities — Delhi, Chennai, Bengaluru and Mumbai, has good availability of stable infrastructure and a proactive and committed state government. The big-ticket announcement catapults Hyderabad into the big league as far as the data centre sector is concerned. The city is already home to multiple data centres operated by homegrown tier IV player CtrlS, apart from a host of captive data centres. Adani group too has been eyeing a hyperscale project here, while in July this year National Payment Corporation of India, the umbrella organisation for operating retail payments and settlement systems in India, announced plans to set up its own tier IV, smart data centre for Rs.500 crore at Narsingi. Once operational, AWS Hyderabad region centre is expected to enable more developers, startups, and enterprises as well as government, education, and non-profit organisations to run their applications and serve end-users and help increase operations of sectors such as e-commerce, public sector, banking and financial services, IT, among others, AWS said.

The AWS Asia Pacific (Mumbai) Region was rolled out in June 2016 with two availability zones and it was expanded in May 2019 to add a third availability zone.

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