Amazon Web Services to start data centers in Telangana

Amazon Web Services (AWS), a subsidiary of Amazon will invest 20,761 crores to set up multiple data centers in Telangana. The Minister for Information and Technology K. T Rama Rao said this will be the largest foreign investment in the state. AWS will set up an Asia Pacific Region based in Hyderabad with additional bases in other parts of the state. The offices will start operations by 2022, and the world-class data-centers in Telangana will cater to the entire Asian region.

Rao said that the investment from AWS would position Telangana as one of the preferred destinations for other companies. These companies include those that are looking to set up offices in the region. It will act as a strong anchor for attracting other technology investments thus boosting employment and growth.

The minister had met officials of AWS during his Davos visit earlier this year. And subsequently arrived at the closure of the investment in a swift manner. The massive FDI is a positive step to streamline the IT sector which remained dormant for many months.

Hyderabad already has the largest office campus of Amazon in the world, in addition to other tech giants like Microsoft, Facebook, and Google. Amazon’s key operation unit in Hyderabad, which is the largest office outside the United States, accommodates around 15,000 employees. Thus, the decision to set up AWS’s largest center is a testimony to the relationship Telangana enjoys with Amazon.

According to a report in a leading financial daily, “The Government of Telangana provides adequate support to multinational companies who operate in the region, thereby attracting investors from across the globe”. The kind of investor-centric schemes makes Hyderabad an ideal destination for the software and hardware industry to flourish.

Example of other states

The independent industrial policies followed by many states in India, unfortunately, stands as a barricade for growth. Telangana sets an example with robust policies targeted specifically towards advancing the growth of IT and IT-enabled services (ITES) companies in India. Hyderabad is home to many innovative start-ups, enterprise, and a skilled workforce, the work eco-system is such that big companies prefer to operate here than other cities. Therefore, a holistic economic framework and simplified compliance regulations are required by all states for a similar economic setup in India.

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