Microsoft’s USD 17.5 billion push signals India’s leap into new AI era

NEW DELHI: Microsoft announced a landmark USD 17.5 billion investment in India over four years, marking its largest commitment in Asia, aimed at expanding the country’s cloud and artificial intelligence (AI) infrastructure, workforce skilling and operational capabilities.

The announcement was made in a statement issued soon after Microsoft Chairman and CEO Satya Nadella met Prime Minister Narendra Modi to discuss India’s AI roadmap and growth priorities.

The company said the new commitment supplements the earlier USD 3 billion investment announced this year, which is expected to be fully deployed by the end of 2026.

With this expanded investment, Microsoft is set to establish its largest hyperscale presence in India through a new data centre region scheduled to go live in mid-2026.

The tech major stated that its efforts align with India’s ambition to build an AI-driven ecosystem at a national scale, focusing on “scale, skills and sovereignty”. It added that India is at a “pivotal moment” in its AI journey as the country accelerates its digital and economic transformation.

Union Minister of Electronics and Information Technology Ashwini Vaishnaw welcomed the move, stating, “As AI reshapes the digital economy, India remains committed to innovation anchored in trust and sovereignty. Microsoft’s landmark investment signals India’s rise as a reliable technology partner for the world. This partnership will set new benchmarks and drive the country’s leap from digital public infrastructure to AI public infrastructure.”

Puneet Chandok, President of Microsoft India and South Asia, said, “Microsoft has been part of India’s fabric for more than three decades. As the nation moves confidently into its AI-first future, we are proud to stand as a trusted partner… Our new USD 17.5 billion commitment and deep partnership across India’s technology ecosystem are focused on turning India’s AI ambition into impact for every citizen.”

He added that the investment is anchored on building hyperscale infrastructure capable of operating AI at scale, deploying sovereign-ready solutions to ensure trust, and expanding skill-development programmes.

A key component of the investment is the development of the India South Central cloud region in Hyderabad, projected to become the company’s largest hyperscale region in the country with three availability zones.

Microsoft will also expand its existing data centre regions in Chennai, Hyderabad and Pune, enabling low-latency, mission-critical services for enterprises, startups and public institutions.

Microsoft also announced that advanced AI tools will be integrated into the Ministry of Labour and Employment’s e-Shram and National Career Service platforms, aimed at benefiting more than 310 million informal workers.

Built on Azure OpenAI Service, these enhancements include multilingual support, AI-enabled job matching, predictive analytics and automated resume creation.

On the skilling front, Microsoft said it is doubling its commitment to train 20 million Indians in AI skills by 2030.

Through the ADVANTA(I)GE India initiative led by Microsoft Elevate, 5.6 million individuals have already been trained since January 2025, enabling more than 125,000 job or entrepreneurial opportunities.

The company further announced the introduction of Sovereign Public Cloud and Sovereign Private Cloud solutions for Indian customers, offering environments tailored to regulatory compliance and data governance.

Microsoft 365 Copilot will also introduce in-country data processing by the end of 2025, making India one of the first global markets to receive the capability.

Microsoft said the announcements reflect a reinforced commitment to building an ecosystem that advances innovation, trust and opportunity.

With expanded hyperscale infrastructure, AI integration into national platforms and a strengthened focus on skilling, the company said India is positioned to “lead the world in the AI era — powered by scale, skilling and sovereignty.” (ANI)