Microsoft has committed $17.5 billion to India over the next four years, a pledge that will double the company’s prior $3 billion investment announced in January 2025 and represents its largest ever spend in Asia. The capital will be deployed from 2026 through 2029, with the first tranche earmarked for building a new hyperscale data‑center region in Hyderabad by mid‑2026 and expanding existing sites in Chennai, Hyderabad, and Pune.
The data‑center expansion is designed to support Microsoft’s growing AI workloads and to provide a robust foundation for Azure services in the region. The new Hyderabad region will be the company’s largest hyperscale hub in India, while the upgrades to Chennai, Hyderabad, and Pune will increase capacity and improve redundancy, positioning Microsoft to meet the rising demand for cloud and AI services from both enterprise and government customers.
In parallel with infrastructure, Microsoft is doubling its AI skilling commitment to 20 million Indians by 2030. As of the announcement, 5.6 million people have already received training since January 2025, a significant acceleration from the original target of 10 million. The program is integrated with the Ministry of Labour and Employment’s e‑Shram and National Career Service platforms, which serve more than 310 million informal workers, thereby expanding the talent pipeline that will support the country’s AI ecosystem.
The investment also introduces sovereign cloud options—Sovereign Public Cloud and Sovereign Private Cloud powered by Azure Local—to address India’s stringent data‑residency and regulatory requirements. These offerings enable government agencies and large enterprises to keep data within national borders while still leveraging Microsoft’s global cloud infrastructure, a critical factor for widespread adoption in a market that is tightening data‑protection rules.
Microsoft’s CEO Satya Nadella said the commitment will help India become a global technology hub and that the company is “turning India’s AI ambition into impact for every citizen.” Puneet Chandok, President of Microsoft India and South Asia, added that the investment will “accelerate the development of a skilled workforce and a sovereign cloud ecosystem that can support the country’s AI-first future.” Prime Minister Narendra Modi welcomed the partnership, noting that the initiative would “empower the youth of India to harness AI for a better planet.”
The announcement comes amid a broader AI investment race, with Google recently committing $15 billion to an AI hub in India. By investing heavily in infrastructure, skills, and sovereign capabilities, Microsoft is positioning itself to capture a larger share of India’s rapidly expanding cloud and AI market, while also reinforcing its competitive stance against other global tech giants in the region.
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