Amazon Web Services (AWS) will invest ₹20,761 crore ($2.77 billion) to establish data centres in Telangana, the state’s IT minister KT Rama Rao announced on Thursday. This will involve the setting up of an AWS Region in Hyderabad, which is expected to become operation by mid-2022; it will be second region in India after Mumbai, which was launched in 2016.

AWS Region in Hyderabad will have three Availability Zones (AZ), which will consist of multiple data centres spread out over Hyderabad. It will be the eleventh region in Asia, joining existing ones in Australia, India, Greater China, Japan, Korea and Singapore. Two other regions currently under the works in Asia are in Osaka, Japan and Jakarta, Indonesia. Globally, this will be the 29th region (operational and in the works).

AWS Regions are essentially self-sufficient, isolated geographic regions that increase the overall stability of the network. Availability zones (AZ) within them are discrete data centres with their own fail-safe power and connectivity mechanisms.

Rama Rao, in a press release issued by his office, said that this is the single largest foreign direct investment (FDI) that Telangana has attracted since its inception in 2014. Amazon along with several tech majors, including Facebook, Google, Apple and Microsoft have an extensive presence or have their India headquarters in Hyderabad. Last year, Amazon had opened its largest campus in the world in the city.

The state government expects the AWS region to be a massive pull for companies looking to set up data centres in Hyderabad. The release read: “The new AWS Asia Pacific (Hyderabad) Region will enable even more developers, startups, and enterprises as well as government, education, and non-profit organizations to run their applications and serve end-users from data centers located in India.”

The current deal with AWS had been under the works for several months; the company got environmental clearance (EC) certificated in February this year. Per reports from this time, AWS had sought clearances at two locations on the outskirts of Hyderabad in Rangareddy district. It was supposed to invest ₹11,624 crore ($1.6 billion), considerably lower than what it has finally decided to pledge. The deal was finally closed during a meeting between Rao and AWS officials during the World Economic Forum’s Davos Summit in January this year, said the release.

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