Microsoft Commits $17.5 Billion to India’s AI & Cloud Infrastructure—Its Largest Investment in Asia to Accelerate Hyperscale Data Centers, Sovereign Cloud, and Nationwide AI Skilling
Microsoft has announced a landmark $17.5 billion investment in India—its largest commitment in Asia to date—to accelerate the nation’s Artificial Intelligence (AI) infrastructure, cloud computing capacity, and sovereign digital ecosystem. Spread across 2026 to 2029, the investment focuses on three strategic pillars: scale, skills, and sovereignty, reinforcing India’s position as one of the fastest-growing global hubs for AI innovation and cloud adoption.
Building India’s AI Superstructure With Hyperscale Cloud Regions
A central component of Microsoft’s investment is the development of secure, high-performance AI and cloud infrastructure. The company is set to launch its largest hyperscale cloud region in Hyderabad by mid-2026—expanding India’s capability to deploy advanced AI models, support mission-critical workloads, and strengthen digital public infrastructure. This move will be bolstered by expansions at Microsoft’s cloud regions in Chennai, Hyderabad, and Pune, delivering greater network resilience and availability for enterprises, startups, and government agencies.
To support India’s strong focus on data governance, Microsoft will introduce Sovereign Public Cloud and Sovereign Private Cloud offerings, enabling organizations in regulated sectors to maintain complete control over data residency, compliance, and security. Additionally, Microsoft 365 Copilot will begin processing data entirely within India by the end of 2025, enhancing trust for sectors such as banking, healthcare, and government.
A Commitment Aligned With India’s AI-First Future
Shri Ashwini Vaishnaw, Union Minister for Electronics & IT, emphasized that the mega-investment underscores India’s emergence as a trusted global technology partner, saying it will help the country evolve from digital public infrastructure (DPI) to AI public infrastructure (AIPI)—a new benchmark in sovereign AI readiness.
Puneet Chandok, President of Microsoft India & South Asia, highlighted that the new funding builds on Microsoft’s earlier $3 billion investment announced in January 2025, adding that the $17.5 billion commitment is designed to power India’s AI ambition through hyperscale infrastructure, sovereign-ready solutions, and inclusive skilling programs.
Empowering India With AI Skilling and Social Impact Programs
Microsoft is also investing heavily in AI skilling, aiming to train 20 million Indians in essential AI and digital capabilities by 2030. The company is working closely with India’s Ministry of Labour and Employment to integrate AI-driven services into national digital platforms such as e-Shram and the National Career Service (NCS). These upgrades will bring AI-assisted job matching, skills mapping, and personalized career recommendations to more than 310 million informal workers, making AI accessible at population scale.
With this historic investment, Microsoft is positioning India as a global leader in AI innovation, cloud transformation, secure digital ecosystems, and next-generation workforce development—unlocking opportunities for enterprises, startups, public sector organizations, and a billion citizens.
