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Microsoft Pledges $17.5 Billion for AI and Cloud Buildout in India

The four-year plan centers on a new Hyderabad cloud region with sovereign-ready services aligned to India’s AI ambitions.

Overview

  • Satya Nadella announced the commitment after meeting Prime Minister Narendra Modi, positioning the effort as a shift toward national-scale AI public infrastructure.
  • Spending is slated for 2026–2029 to expand hyperscale capacity, with the India South Central region in Hyderabad set to go live in mid-2026 and additional expansions in Chennai and Pune.
  • Microsoft will offer sovereign public and private cloud options tailored to Indian compliance requirements, with Microsoft 365 Copilot set for in‑country data processing by the end of 2025.
  • Azure AI capabilities will be integrated into government platforms e‑Shram and the National Career Service to serve informal workers and job seekers.
  • The company doubled its India skilling goal to 20 million people by 2030 as global tech rivals also roll out multi‑billion‑dollar data center investments in the country.