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Microsoft Pledges $17.5 Billion to Accelerate India’s AI Push After Nadella–Modi Meeting

The four-year plan centers on a Hyderabad hyperscale region slated for mid‑2026 with a parallel goal to train 10 million people.

Overview

  • Microsoft confirmed the $17.5 billion commitment for CY2026–2029, calling it its largest investment in Asia.
  • The company framed the initiative around three pillars—scale, skills, and sovereignty—aligned with India’s AI roadmap.
  • A new India South Central cloud region in Hyderabad, with three availability zones, is scheduled to go live in mid‑2026.
  • Microsoft announced a partnership to bring Azure OpenAI features to the e‑Shram portal and National Career Service for multilingual access and AI‑assisted job matching.
  • The pledge builds on a $3 billion plan unveiled in January 2025 that Microsoft expects to complete by end‑2026, while India has yet to publish operational implementation details.