Microsoft to Invest $17.5 Billion in India, Says Nadella

• Microsoft will invest US$17.5 billion over four years to boost India's cloud and AI infrastructure and workforce skilling
• Microsoft is integrating AI into India’s e-Shram and NCS platforms to support 310 million informal workers
• Microsoft is expanding its cloud infrastructure with a new hyperscale region in Hyderabad and additional data centers in Chennai, Hyderabad, and Pune

As India continues to move forward on its AI journey, it is becoming a global leader in digital transformation and artificial intelligence (AI). By becoming a major source for technological-driven inclusive growth, India is also rapidly becoming an AI frontier nation.

To assist in achieving this vision, Microsoft announced their largest investment ever in Asia: a total of $17.5 billion over a four-year period (calendar years 2026-2029). The purpose of the investment is to improve India's cloud and AI infrastructure, workforce skilling and ongoing operations. Microsoft had previously committed $3 billion to India and is expected to allocate those funds by the end of 2026.

The announcement is the result of a meeting between Microsoft's Chairman and CEO Satya Nadella and Indian Prime Minister Narendra Modi, where they discussed India’s AI roadmap and growth priorities. The investment will help the Prime Minister's vision of building an ecosystem that allows AI to be developed and accessed by everyone in India.

Investment will be made in 3 main areas: Scale – Microsoft will expand its cloud and AI capabilities to Indian customers through enhanced infrastructure; Skills – Microsoft further develops its workforce skilling initiatives for AI and other technologies; Sovereignty – Microsoft deepens its presence across multiple cities including Bengaluru, Hyderabad, Pune and Noida.

Ashwini Vaishnaw, Union Minister of Electronics & Information Technology stated, “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. This partnership will set new benchmarks and drive the country's leap from digital public infrastructure to AI public infrastructure”.

“Microsoft has been part of India's fabric for more than three decades. As the nation moves confidently into its AI- first future, we are proud to stand as a trusted partner in advancing the infrastructure, innovation and opportunity that can power a billion dreams. Building on the US$3 billion investment announced in January 2025, our new US$17.5 billion commitment and deep partnership across India's technology ecosystem are focused on turning India's AI ambition into impact for every citizen. This transformation is anchored on three pillars: hyperscale infrastructure to run AI at scale, sovereign-ready solutions that ensure trust, and skilling programs that empower every Indian to not just join the future but shape it”, added Puneet Chandok, President, Microsoft India and South Asia.

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Currently more than 22,000 Microsoft employees are working on AI and digital transformation innovation and are part of Global Microsoft AI initiatives like Copilot Studio, Azure AI and AI-powered language tools.

A significant portion of this Investment will support the development of our Hyderabad South Central cloud region, which will be the largest hyperscale cloud region for Microsoft in India. The cloud will be live in mid-2026; it will support the growing needs of enterprise, start-up, and public sectors alike. Additionally, Microsoft will continue to develop its existing data centers in Chennai, Hyderabad, and Pune providing higher resiliency and low-latency, mission-critical performance.

In addition, Microsoft announced its integrative efforts with India’s e-Shram and National Career Service (NCS) digital public platforms to incorporate advanced AI capabilities into those systems. Microsoft has created these two digital public platforms utilizing its secure and scalable Azure cloud infrastructure to support service to over 310 million informal workers in India and leverage AI-enabled features of multilingual access, job matching, predictive analytics, and automated resume generation to enhance access to formal employment as well as improve social protection coverage in India.

Additionally, due to the growing demand for AI skills, Microsoft announced a doubling of its commitment to skilling up to 20 million people in India by 2030. Microsoft is working in partnership with stakeholders across the nation in its ADVANTA(I)GE India initiative and has already trained 5.6 million individuals since January 2025, exceeding its initial goal, and has created significant economic impact through job placement and entrepreneurial opportunities.

In support of India's Digital Sovereignty, Microsoft has developed Sovereign Public Cloud and Sovereign Private Cloud to provide secure, compliant environments for enterprises operating within India, while also allowing for compliance with governance and regulatory requirements.

In addition, Microsoft 365 Copilot will allow in-country processing of data for the entire platform before the end of 2025 to continue to provide more governance and compliance opportunities for organizations that operate in the sectors of Government, Banking and Finance, and Healthcare.

Through these investments and initiatives, Microsoft is helping lead the way in developing India's ambitious AI Strategy. The expansion of infrastructure, integration of AI into National Platforms, and preparation of a Workforce to be trained in AI will enable India to emerge as a leader in AI, creating new standards for Tech Adoption, Tech Innovation, and Equity.