India has secured Microsoft’s largest investment in Asia, with the tech giant committing $17.5 billion to expand its artificial intelligence and cloud infrastructure over the next four years. The announcement marks a major boost to India’s digital and AI ecosystem, reflecting the country’s growing strategic importance in global technology development.
Microsoft’s plan includes building a new hyperscale cloud region in Hyderabad, designed to significantly increase data-processing capacity and support the country’s rapidly rising demand for AI-driven services. The company will also expand its existing data-centre operations in Pune, Chennai, and Hyderabad, enabling businesses, startups, and government institutions to access more advanced and resilient cloud capabilities.
A major part of the investment focuses on strengthening India’s AI readiness. Microsoft aims to train millions of individuals in AI and cloud skills, targeting students, professionals, and workers across both organised and informal sectors. The company also intends to integrate AI tools into large public-service platforms, offering solutions such as intelligent job-matching, multilingual assistance, and improved access to digital services.
For India, the investment represents a significant push toward becoming a global hub for AI and cloud technologies. It is expected to accelerate innovation, support digital transformation across industries, and deepen India’s capabilities in sovereign-ready cloud infrastructure, a key requirement for sectors like banking, healthcare, and public services.
Microsoft’s $17.5-billion commitment highlights the scale of opportunity in India’s digital economy and signals a new phase of growth where the country becomes central to global AI expansion. The new cloud region, set to go live by 2026, is poised to strengthen India’s position as one of the world’s fastest-growing technology markets.