Microsoft commits $17.5bn to India's AI push
The investment will help build AI infrastructure, skills and sovereign capabilities in India.
Microsoft will spend $17.5 billion to expand India’s artificial intelligence infrastructure. Satya Nadella called it the company’s largest investment in Asia. The money will roll out over four years.
Microsoft says the plan focuses on infrastructure, skills and “sovereign capabilities” for an AI-driven economy.
A new hyperscale cloud region in Hyderabad anchors the buildout. It is set to go live in mid-2026 and is twice the size of Kolkata’s Eden Gardens stadium.
The company says the project will help India move from digital public infrastructure to AI public infrastructure. It follows an earlier pledge of $3 billion for AI and cloud services.
Nadella announced the investment after meeting Prime Minister Narendra Modi. Modi said he welcomed the commitment and expects India’s youth to drive new AI innovation.
Global tech firms are making similar moves. India is on track to exceed 900 million internet users this year, and companies want in. Google plans to invest $15 billion. Anthropic is opening an office.
OpenAI is doing the same. Perplexity has struck a major deal with telecom giant Airtel.
Modi also met with Intel and Cognizant. Intel CEO Lip-Bu Tan said the company supports India’s semiconductor ambitions. Cognizant used its meeting to discuss AI adoption and skills development.
India wants to position itself as an AI hub, but regulators are tightening rules. Reports suggest the government may require satellite location tracking on smartphones that users cannot disable, prompting concern from rights groups.
The Recap
- Microsoft to invest US$17.5 billion in India's AI ecosystem.
- Investment is Microsoft’s largest in Asia, the post said.
- Funds aimed at infrastructure, skills and sovereign capabilities development.
