Microsoft Pledges $17.5 Billion Investment in India for AI and Cloud Infrastructure

Microsoft Unveils Landmark $17.5 Billion Investment in India

New Delhi, India – Microsoft has announced a significant investment of $17.5 billion in India, marking its largest commitment in Asia. This substantial funding, to be deployed over four years from 2026 to 2029, is aimed at advancing the country's cloud and artificial intelligence (AI) infrastructure, enhancing skilling initiatives, and supporting ongoing operations. The announcement came after a productive meeting between Microsoft CEO Satya Nadella and Indian Prime Minister Narendra Modi in New Delhi.

The investment builds upon an earlier commitment of $3 billion announced in January 2025, which was focused on establishing cloud and AI infrastructure. Microsoft's strategic move underscores India's growing importance as a global digital market and an emerging hub for AI innovation.

Pillars of India's AI-First Future

Microsoft's investment strategy in India is structured around three core pillars: scale, skills, and sovereignty. These align with Prime Minister Modi's vision for building a comprehensive ecosystem that drives AI innovation and access across the nation.

CEO Satya Nadella expressed his enthusiasm for India's potential, stating, 'Thank you, PM @narendramodi ji, for an inspiring conversation on India's AI opportunity. To support the country's ambitions, Microsoft is committing US$17.5B—our largest investment ever in Asia—to help build the infrastructure, skills, and sovereign capabilities needed for India's AI first future.' Prime Minister Modi reciprocated, noting, 'When it comes to AI, the world is optimistic about India! Had a very productive discussion with Mr. Satya Nadella. Happy to see India being the place where Microsoft will make its largest-ever investment in Asia.'

Expanding Cloud and AI Infrastructure

A significant portion of the investment will be dedicated to expanding Microsoft's cloud and AI infrastructure. Key initiatives include:

• Development of a new hyperscale data center region in Hyderabad, which is slated to go live by mid-2026. This facility is projected to be Microsoft's largest hyperscale region in India, featuring three availability zones.
• Continued expansion of its three existing operational data center regions located in Chennai, Hyderabad, and Pune.
• The goal is to establish Microsoft's largest hyperscale presence in India, providing robust and secure infrastructure for AI adoption.

Puneet Chandok, President of Microsoft India and South Asia, highlighted the company's long-standing presence, stating, '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 in advancing the infrastructure, innovation and opportunity that can power a billion dreams.'

Skilling Initiatives and Social Impact

Beyond infrastructure, Microsoft is doubling down on its commitment to workforce development. The company plans to equip 20 million Indians with essential AI skills by 2030. Through its ADVANTA(I)GE India initiative, Microsoft has already trained 5.6 million people since January 2025.

The investment also includes integrating advanced AI capabilities into key digital public platforms of the Ministry of Labour and Employment—e-Shram and the National Career Service (NCS). This initiative aims to extend the benefits of AI to over 310 million informal workers in India. Union Electronics and Information Technology Minister Ashwini Vaishnaw remarked, '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.'