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Microsoft Opens Fourth India Cloud Region in Hyderabad

The operational Hyderabad region brings local AI compute to regulated customers with air‑cooling that cuts water use.

Overview

  • Microsoft made the India South Central cloud region in Hyderabad operational for advanced AI workloads on Monday, Sept 21, 2026.
  • The Hyderabad facility uses air‑cooled chillers that effectively eliminate water use for cooling and is built with three independent zones for power, cooling and networking to improve resilience.
  • Microsoft says the region was designed to help customers meet India’s DPDP data‑protection rules, RBI guidance and CERT‑In requirements, and reports that Adani Group, Bajaj Finserv, HDFC Bank and PB Pay have signed up.
  • The launch is part of Microsoft’s $20.5 billion investment in India and ties infrastructure to a skilling pledge of 20 million people by 2030, with the company reporting 10 million trained so far and 125,000 people placed or starting ventures after training.
  • MeitY told Microsoft to locate future data centres nearer power‑generation sites to cut electricity transport costs, a recommendation that could shift siting choices, affect grid planning and influence local job growth.