Microsoft will invest $17.5 billion (Rs 1.58 lakh crore) in India between 2026 and 2029 to develop its cloud and Artificial Intelligence (AI) capacities. The announcement was made by the company CEO in a social media post after meeting Prime Minister Narendra Modi on December 9, Tuesday.
“Thank you, PM @narendramodi ji, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing $17.5B — our largest investment ever in Asia — to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI-first future. @PMOIndia,” Satya Nadella posted on X.
In a press statement released shortly after the two leaders met, Microsoft said the announcement follows an earlier investment of $ 3 billion — towards establishing cloud and AI infrastructure in Bengaluru over the next two years. “This will be our largest hyperscale region in India, comprising three availability zones — roughly equivalent in size to two Eden Gardens stadiums combined,” a company statement read.
“When it comes to AI, the world is optimistic about India! Had a very productive discussion with Mr. Satya Nadella. Happy to see India being the place where Microsoft will make its largest-ever investment in Asia. The youth of India will harness this opportunity to innovate and leverage the power of AI for a better planet,” PM Modi posted on X.
Microsoft’s funding commitment is the third major AI-driven investment announced in the country in the past two months. The company has doubled its commitment on developing AI skilled talent in India to 20 million by 2030 from 10 million it planned earlier.
On October 14, Google announced plans to invest $15 billion over the next five years to set up an AI hub in India, which will include the country’s largest data centre in partnership with Adani Group. It was followed by a $11 billion investment plan announced by Digital Connexion — a joint venture between Brookfield, Reliance Industries and US-based Digital Realty.
In May 2023, Amazon announced plans to invest $12.7 billion in India by 2030 into its local cloud and AI infrastructure across Telangana and Maharashtra. The company has already invested $3.7 billion between 2016 and 2022 in India.
Microsoft said that its India South Central cloud region, based in Hyderabad, is set to go live in mid-2026.
“Microsoft’s landmark investment signals India’s rise as a reliable technology partner for the world. This partnership will set new benchmarks and drive the country’s leap from digital public infrastructure to AI public infrastructure,” Union Electronics and IT Minister Ashwini Vaishnaw said.
