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Microsoft Commits $17.5 Billion to Build AI and Cloud Infrastructure in India

The four-year plan aligns with India’s push for sovereign cloud capacity, positioning Microsoft against rivals racing to expand AI infrastructure.

Overview

  • Satya Nadella announced the commitment after meeting Prime Minister Narendra Modi, calling it Microsoft’s largest investment in Asia.
  • The funding will be deployed from 2026 to 2029 across three pillars: scale, skills, and sovereignty, building on a $3 billion pledge made in January 2025.
  • Microsoft’s India South Central cloud region in Hyderabad is slated to go live in mid-2026 as the company’s largest hyperscale footprint in the country.
  • Azure AI capabilities will be integrated into national platforms e-Shram and the National Career Service, targeting services for more than 310 million informal workers.
  • Microsoft doubled its AI skilling goal to train 20 million people in India by 2030 and highlighted sovereign-ready cloud offerings, as India attracts rival investments such as Google’s $15 billion.