Amazon Considering India for Its Next Data Centres

The world's largest online retailer Amazon is evaluating the feasibility of setting up data centres in India to tap into the multi-billion cloud opportunity in the country.

Amazon, which offers cloud services under Amazon Web Services (AWS), is looking to aggressively expand its foothold in the Indian market, which has players like Google and IBM offering similar services.

Speaking at an FICCI event, Amazon founder and chief Jeff Bezos said the company's AWS business has grown incredibly fast.

"We are always evaluating new locations. We have AWS. We started it long time ago and it has grown into a very large business, separate from our consumer business... we are building new data centres and are looking where we should put them and evaluating these in India as well," Bezos said.

On Tuesday, software giant Microsoft had said it will set up 3 data centres in India, offering commercial cloud services, to tap what it estimates is a $2 trillion (roughly Rs. 12.4 million crores) opportunity. These data centres are expected to be set up by the end of 2015.

(Also See: Amazon India Kicks Off 'Release Day Delivery' With Xbox One Launch)

Bezos said the pace at which Internet penetration is increasing in India is stunning and that is one of the tailwinds for the growth of e-commerce.

"India is unbelievably energising; the people are focused on learning and extremely inventive," he added.

For Amazon, which launched its marketplace in India last year, India is one of its fastest growing markets and is on track to touch $1 billion (roughly Rs. 6,200 crores) in gross sales.

On small and medium businesses (SMBs), Bezos said Amazon is working extensively with Indian players, promoting several domestic e-commerce initiatives.

He added an outreach programme is currently being run in India to train SMEs on how to use tools, techniques and processes that are available through the Internet for promoting and expanding their businesses.

"Indian SMEs can reach out to the global audience and consumers across the globe with the application of right technology and right logistics planning," he said.

He added that Amazon will upgrade logistics services in India, and develop mobile platform and new tools and techniques to help small and medium businesses grow further.

In July this year, Amazon had announced an additional investment of $2 billion (roughly Rs. 12,300 crores) into its Indian operations to beef up its operations in India, where e-commerce is still in its nascent stages.

While the market currently is pegged at about $2.3 billion (roughly Rs. 14,200 crores), a report by consulting firm Technopak expects the figure to touch $32 billion (roughly Rs. 198,000 crores) by 2020.