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Microsoft to Invest $17.5 Billion in India Over Four Years to Build AI and Cloud Infrastructure

The pledge positions the company to bolster sovereign AI capacity in a market increasingly courted by global rivals.

Overview

  • CEO Satya Nadella announced the plan on X after meeting Prime Minister Narendra Modi in New Delhi.
  • Microsoft says the funds will help India develop the infrastructure, skills and sovereign capabilities needed for its AI future.
  • A new hyperscale data center is slated to begin operations by mid-2026 as part of a nationwide expansion.
  • The commitment surpasses Microsoft’s earlier $3 billion India plan for cloud, data centers and workforce training.
  • The move heightens competition with Google, which in October outlined a $15 billion investment to build its first AI center in Visakhapatnam.