Microsoft to invest $17.5B in India's AI, cloud infrastructure
What's the story
Microsoft has announced a massive investment of $17.5 billion in India between 2026 and 2029. The move is aimed at boosting the country's cloud and artificial intelligence (AI) infrastructure, skilling, and sovereign digital capabilities. This is Microsoft's biggest investment in Asia so far, and comes after the company had committed $3 billion earlier this year.
Strategic discussions
Nadella's meeting with PM Modi precedes Microsoft's investment announcement
The announcement of the $17.5 billion investment came after Microsoft Chairman and CEO Satya Nadella met with Prime Minister Narendra Modi yesterday. The meeting was part of Microsoft's India AI tour, where Nadella thanked the PM for an "inspiring conversation on India's AI opportunity."
AI frontier
Microsoft's vision for India's AI journey
In a blog post, Microsoft outlined its vision for India's AI journey. The company said India is at the cusp of an "AI moment," emerging as a frontier AI nation defined by impact at scale. "Together, Microsoft and India are poised to set new benchmarks and drive the country's leap from digital public infrastructure to AI public infrastructure in the coming decade," it added.
Infrastructure development
Microsoft's investment to enhance AI capabilities in India
Puneet Chandok, President of Microsoft India and South Asia, said the new $17.5 billion commitment will help advance hyperscale infrastructure, the sovereign-ready systems, and large-scale skilling initiatives. The investment will support cloud and AI expansion across India with a workforce of over 22,000 employees in Bengaluru, Hyderabad, Pune, Gurugram, Noida among other cities. A major chunk of the investment will go into secure hyperscale infrastructure.
Cloud expansion
Microsoft to expand existing cloud regions in India
Microsoft is also expanding its three existing cloud regions in Chennai, Hyderabad, and Pune. The expansion shall ensure greater resilience and low-latency performance for enterprises, start-ups, and the public sector. The company is also building a new India South Central cloud region in Hyderabad which will go live by mid-2026 with three availability zones.
AI integration
Microsoft partners with Ministry of Labour and Employment
Microsoft has partnered with the Ministry of Labour and Employment to integrate its advanced AI capabilities into two major digital public platforms, e-Shram and National Career Service. The integration aims to extend AI benefits to over 310 million informal workers in India. With Azure OpenAI Service, such platforms now offer multilingual access, AI-assisted job matching, predictive analytics, automated resume creation, and personalized pathways to formal employment.