New Delhi, Dec 10 : Microsoft on Tuesday announced a landmark $17.5 billion investment in India over the next four years, marking its largest commitment in Asia and underlining India’s emergence as a key global hub for cloud computing and artificial intelligence (AI).
The announcement followed a meeting between Microsoft Chairman and CEO Satya Nadella and Prime Minister Narendra Modi, during which the two discussed India’s AI roadmap and digital growth priorities.
Microsoft said the new commitment builds on the $3 billion investment announced earlier this year, which is expected to be fully deployed by the end of 2026. With the expanded investment, the company plans to establish its largest hyperscale presence in India, including a new data centre region scheduled to go live in mid-2026.
The company said the investment aligns with India’s ambition to build a national-scale, AI-driven ecosystem, anchored around the principles of “scale, skills and sovereignty.” It described India as being at a “pivotal moment” as it accelerates its digital and economic transformation.
Welcoming the announcement, Union Minister for Electronics and Information Technology Ashwini Vaishnaw said the investment reflects India’s growing stature in the global technology ecosystem. “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,” he said.
Puneet Chandok, President of Microsoft India and South Asia, said the company’s long-term commitment is focused on converting India’s AI ambition into tangible outcomes. “Our new $17.5 billion commitment and deep partnership across India’s technology ecosystem are aimed at delivering impact for every citizen,” he said, adding that the investment will prioritise hyperscale infrastructure, sovereign-ready solutions and large-scale skilling.
A key pillar of the expansion is the India South Central cloud region in Hyderabad, which is expected to become Microsoft’s largest hyperscale region in the country, with three availability zones. The company 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 the integration of advanced AI tools into the Ministry of Labour and Employment’s e-Shram and National Career Service platforms, aimed at benefiting over 310 million informal workers. Built on Azure OpenAI Service, the tools will offer multilingual support, AI-enabled job matching, predictive analytics and automated résumé creation.
On skilling, Microsoft said it will train 20 million Indians in AI skills by 2030, doubling down on its earlier commitment. Under the ADVANTA(I)GE India initiative led by Microsoft Elevate, 5.6 million people have already been trained since January 2025, supporting more than 125,000 job and entrepreneurial opportunities.
The company further announced the rollout of Sovereign Public Cloud and Sovereign Private Cloud solutions for Indian customers, designed to meet regulatory compliance and data governance requirements. In addition, Microsoft 365 Copilot will enable in-country data processing by the end of 2025, making India one of the first global markets to receive the feature.
Microsoft said the announcements reinforce its commitment to building an ecosystem that advances innovation, trust and opportunity, positioning India to play a leading role in the global AI landscape.