Microsoft announced on Tuesday it will invest $17.5 billion (€15 billion) in India over the next four years, marking the company’s largest-ever investment in Asia. This initiative aims to enhance India’s cloud and artificial intelligence infrastructure.
The announcement came from CEO Satya Nadella following a meeting with Indian Prime Minister Narendra Modi in New Delhi. In a post on X, Nadella emphasized that the multi-billion-dollar commitment is designed to foster the “infrastructure, skills, and sovereign capabilities” vital for an AI-driven future.
Currently on a three-day visit to India, Nadella is engaging with policymakers and participating in AI-related events in Bengaluru, known as the country’s technology hub, and Mumbai, its financial center. A Microsoft statement noted, “Together, Microsoft and India are poised to set new benchmarks and drive the country’s leap from digital public infrastructure to AI public infrastructure in the coming decade.”
India has ambitious objectives to position itself as a global leader in AI and semiconductor production. The government is rolling out financial incentives to draw major chipmakers and tech firms, aiming to bolster local innovation, create jobs, and reduce dependency on imported technology.
“Regarding AI, the world has great confidence in India,” Modi commented on X after his discussions with Nadella.
This significant investment by Microsoft comes as competition intensifies among major tech firms to expand operations in India, recognized as one of the world’s fastest-growing digital markets. In a similar vein, Google announced plans in October to invest $15 billion in India over five years, which includes establishing its first AI hub in Visakhapatnam, southern India.
Microsoft’s new investment plan surpasses its earlier commitment of $3 billion made this year, which focused on enhancing cloud and AI infrastructure through new data centers and workforce skills development. The company has been operational in India for over 30 years and currently employs more than 22,000 people there, continually expanding its cloud and data center capabilities to meet increasing computing demands.
One of Microsoft’s primary objectives is to “build secure, sovereign-ready hyperscale infrastructure to enable AI adoption in India.” This includes plans for a cloud region that is twice the size of the iconic Eden Gardens stadium in Kolkata. The tech giant highlighted the ongoing progress at the India South Central cloud region in Hyderabad, which is set to go live in mid-2026.
In addition to its activities in India, Microsoft is also planning to invest more than $5.4 billion in Canada over the next two years. The company indicated that new Canadian cloud capacity under this initiative would become operational in the second half of 2026.
As Microsoft establishes itself more firmly in India, the implications of this investment could extend beyond mere infrastructure. It reflects a broader trend of tech giants recognizing the importance of emerging markets in shaping the future of technology and AI, potentially driving economic growth and innovation in the region for years to come.
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