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Microsoft Opens Largest India Data Center in Hyderabad

The new Azure India South Central region will keep sensitive data in India to meet sovereignty rules for government and banks.

Overview

  • Microsoft opened the Hyderabad Azure India South Central region on Thursday, adding a fourth Indian cloud region with multiple availability zones and hyperscale capacity.
  • The launch is part of a roughly $20.5 billion multi‑year investment in India's cloud and AI infrastructure that Microsoft assembled from earlier $3 billion and $17.5 billion commitments.
  • Major Indian customers including Adani Group and HDFC Bank have signed up as early users, reflecting demand from enterprises and financial firms that require local data hosting.
  • Microsoft says the region will support sovereign‑cloud offerings and large training programs to boost AI use, while rivals Google and Amazon continue their own large data‑center builds in India.
  • Environmental and regulatory concerns have been raised about some data‑center projects in India over water use and wildlife impact, creating a local policy backdrop Microsoft and peers must navigate.