Microsoft Commits $17.5 Billion to Boost India’s AI & Cloud Future in Its Largest Asian Investment

Microsoft has officially announced a historic US$17.5 billion investment its largest-ever in Asia, to accelerate India’s AI and cloud transformation. Spread across 2026 to 2029, this long-term commitment highlights India’s rising global significance in next-generation technologies. Focused on infrastructure, skills, and digital sovereignty, Microsoft aims to strengthen the country’s digital backbone while preparing millions of Indians for an AI-first era.

A Massive Boost to India’s AI & Cloud Infrastructure

At the heart of Microsoft’s multi-billion-dollar investment is a strong push to build secure, sovereign, and scalable AI infrastructure across India.

Launch of Microsoft’s Largest Hyperscale Cloud Region

The company is preparing to roll out what will become its largest hyperscale data centre region in Hyderabad, expected to go live by mid-2026. This new facility will handle massive AI workloads, improve latency, and offer Indian enterprises a stronger foundation for innovation.

Expansion of Existing Data Centres

To further strengthen India’s digital backbone, Microsoft will expand its existing cloud regions in:

Chennai

Hyderabad

Pune

This expansion ensures greater capacity, redundancy, and choice for Indian startups, public sector bodies, and global organisations operating in India.

Focus on Data Sovereignty & Security

India’s growing emphasis on data governance and localisation has prompted Microsoft to introduce:

Sovereign Public Cloud solutions

Sovereign Private Cloud offerings

These services are specifically designed for high-compliance sectors such as banking, healthcare, government, and public utilities.

In a major compliance-focused step, Microsoft confirmed that Microsoft 365 Copilot will start processing all customer data within India by late 2025, ensuring end-to-end data residency for regulated industries.

Scaling AI Access Through Skilling & Social Innovation

Microsoft’s investment not only focuses on infrastructure but also aims to bring AI benefits to the grassroots level, impacting millions of Indians.

AI Integration with National Digital Platforms

Working closely with the Ministry of Labour & Employment, Microsoft is embedding AI capabilities into two key platforms:

e-Shram, catering to unorganised sector workers

National Career Service (NCS)

This integration will bring AI-powered services—such as job recommendations, skill matching, and digital assistance—to over 310 million informal workers, helping them access better livelihood opportunities.

Doubling India’s AI Skilling Mission

Microsoft has also doubled its AI skilling commitment, targeting the training of:

20 million Indians with essential AI skills by 2030

In partnership with educational institutions, government bodies, and industry players, the company aims to ensure equal access to future-ready employment.

Government & Industry Leaders React to Microsoft’s Commitment

The landmark announcement has drawn strong backing from India’s technology leadership.

Government Endorsement

Shri Ashwini Vaishnaw, Union Minister of Electronics & IT, praised the move, stating:

“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 emphasised that this partnership will help India transition from “digital public infrastructure” to AI public infrastructure, setting a new global benchmark.

Microsoft’s Vision for India

Puneet Chandok, President of Microsoft India & South Asia, highlighted the company’s deep-rooted commitment:

“Our US$17.5 billion commitment builds on the US$3 billion investment announced in January 2025, with a focus on turning India’s AI ambition into impact for every citizen.”

He outlined three major pillars of transformation:

Hyperscale AI-ready infrastructure

Sovereign solutions built on trust

Mass-scale skilling to empower every Indian

Building on Previous Investments & Accelerating India’s AI Journey

This new $17.5 billion pledge follows an earlier US$3 billion investment, further signalling Microsoft’s long-term vision for India as a global AI innovation hub. With world-class infrastructure, powerful sovereign cloud offerings, deep skilling programs, and nationwide AI-first initiatives, Microsoft aims to help India unlock new economic potential, support digital inclusion, and shape the future of responsible AI.