Microsoft CEO Satya Nadella has announced a record $17.5 billion (₹1.46 lakh crore) investment in India the company’s largest-ever in Asia aimed at strengthening the nation’s cloud and artificial intelligence (AI) infrastructure, skill development, and digital sovereignty.
Microsoft’s Largest-Ever Investment in Asia
Microsoft Chairman and CEO Satya Nadella on Tuesday announced a $17.5 billion (₹1.46 lakh crore) investment in India the company’s largest in Asia to date. The investment, spread over 2026 to 2029, will focus on advancing India’s AI and cloud infrastructure, skilling programs, and digital sovereignty initiatives. After meeting Prime Minister Narendra Modi in New Delhi, Nadella posted on X (formerly Twitter):
“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.”
Focus on Infrastructure, Skills, and Sovereignty
According to Microsoft’s official statement, the investment will center on three key pillars scale, skills, and sovereignty. The initiative aligns with the Indian government’s vision of building a comprehensive AI ecosystem that promotes innovation, accessibility, and economic growth nationwide.
The company stated that the funds would accelerate India’s AI roadmap by developing secure, sovereign-ready hyperscale infrastructure, expanding data center capacity, and enhancing digital workforce skilling initiatives.
New Hyperscale Cloud Region in Hyderabad
A major portion of the investment will go toward developing Microsoft’s new “India South Central Cloud Region” based in Hyderabad, scheduled to go live by mid-2026. The new region will comprise three availability zones, making it the company’s largest hyperscale cloud region in India, spread across an area roughly equal to two Eden Gardens stadiums combined.
Microsoft will also expand its existing data centers in Chennai, Hyderabad, and Pune, strengthening operational resilience and delivering low-latency, high-performance cloud services for enterprises, startups, and public sector organizations.
Empowering India’s AI Workforce
Microsoft emphasized that the investment would significantly strengthen India’s AI and cloud talent ecosystem. The company currently employs over 22,000 professionals across Bengaluru, Hyderabad, Pune, Gurugram, and Noida, working in areas ranging from model development and engineering to customer solutions and product innovation.
“These teams are driving India’s digital transformation while contributing to global AI advancements including Copilot Studio, Azure AI Search, AI agents, speech and translation, and Azure Machine Learning,” the company said.
Building Secure and Sovereign AI Capabilities
Microsoft highlighted that one of its core priorities is to develop secure, sovereign-ready AI infrastructure to advance India’s ambitions for data security and digital independence.
The company noted that this expansion would enable Indian enterprises, government agencies, and developers to harness cutting-edge AI tools and cloud computing with enhanced security, compliance, and transparency empowering responsible AI adoption across sectors.
A Strategic Boost to India’s AI Vision
Nadella’s announcement marks a milestone in India’s emergence as a global hub for AI innovation and technology leadership. The investment reflects Microsoft’s strong confidence in India’s digital economy, skilled talent, and policy environment, framing it as a long-term strategic partner in the AI era.
Earlier in January 2025, Nadella had announced a smaller $3 billion (₹25,000 crore) investment in India’s AI and cloud ecosystem. The new $17.5 billion (₹1.46 lakh crore) commitment builds upon that foundation, positioning India at the core of Microsoft’s global strategy.
