The investment, which will be made by 2030, is aimed at meeting the growing demand for cloud in the country.
Amazon added that the investment in data centres is expected to support around 131,000 full-time jobs annually at local operations.
The initiative will create jobs across engineering, telecommunications, construction, facility maintenance, and other areas.
This comes after AWS’s $3.7bn investment between 2016 and 2022, which would increase AWS’s overall investment in India to $16.4bn by 2030.
AWS India and South Asia president of commercial business Puneet Chandok said: “Since 2016, AWS has invested billions of dollars into cloud infrastructure in India to support the tremendous growth we have witnessed in the use of the cloud for digital transformation.
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“Our planned investment of $12.7bn by 2030 will help create more beneficial ripple effects, supporting India on its path to becoming a global digital powerhouse.”
Currently, AWS operates in two regions in India, the AWS Asia Pacific (Mumbai) Region, established in 2016, and the AWS Asia Pacific (Hyderabad) Region, launched in November 2022.
Minister of State for the ministry of electronics and information technology in India (MeitY), Rajeev Chandrashekhar said: “India Cloud and the underlying data centre infrastructure are important elements of India’s digital infrastructure and ecosystem.
“I welcome the Amazon Web Services investment of $12.7bn to expand their data centres in India. It will certainly catalyse India’s digital economy. MeitY is also working on a cloud and data center policy to catalyse innovation, sustainability, and growth of India Cloud.”