Amazon is increasing its investment in data center infrastructure in India to more effectively meet the data localization policies of the country.
Government of India is adopting stronger data protection laws for the IT and e-commerce companies that operate in the country. Last year, the government had made it mandatory for all the companies to store the financial data of Indian users in India only.
The aim of data localization is to protect the data and information of citizens against identity thefts, data breaches, etc.
Amazon has its data center in Mumbai with two availability zones. This is an AWS Asia Pacific region that has been developed to meet compliance standards and offer high levels of security to AWS customers.
The company has invested around Rs 1,380 crore (around $198 million) into its data services arm, as per the documents by Paper.vc. This datacenter delivers cloud computing services for the purpose of data storage, hosting, and data protection.
Along with its e-commerce business, the company also operates Amazon Data Services India and Amazon Internet Services.
The recent investment in the data center in India will help Amazon to establish a stronger presence in the country and compete effectively against its cloud rivals like Microsoft and Alibaba Cloud.
“My bet is on Amazon seeing a massive opportunity that only it can effectively leverage with the new data localizations norms in India. One can expect to see new data center locations coming up alongside India-specific localization solutions,” said Vivek Durai, founder of Paper.vc.
Earlier this year, Oracle also announced its first data center in India, claiming that it is the sixth biggest country for them in terms of revenue.