Microsoft Commits $17.5 Billion to Bolster AI Infrastructure in India
Microsoft CEO Satya Nadella unveiled plans to invest $17.5 billion in India from 2026 to 2029, targeting AI infrastructure and data center expansion. The commitment follows a $3 billion pledge for Asian markets earlier this year. Nadella confirmed the strategy after discussions with Indian Prime Minister Narendra Modi, emphasizing sovereign AI capabilities and local data processing.
A hyperscale data center in Hyderabad—slated for mid-2026—will anchor Microsoft's largest Indian region. Existing facilities in Chennai, Pune, and Hyderabad will also expand. Sovereign Cloud solutions will grant Indian entities tighter control over compliance, while Microsoft 365 Copilot ensures onshore data processing by late 2025, positioning India among four priority global markets.
The initiative includes upskilling 20 million Indians, though specifics remain undisclosed. This MOVE accelerates India's emergence as a hub for AI development, aligning with multinationals' growing bets on emerging tech ecosystems.