Microsoft announces USD 17.5 billion investment in India’s AI infrastructure

Microsoft Chairman and CEO Satya Nadella on Tuesday announced an investment of USD 175 billion in India to bolster the nationrsquos rapidly growing Artificial Intelligence AI infrastructure an official statement saidThe announcement came following a meeting between Nadella and Prime Minister Narendra Modi during which they discussed Indiarsquos AI roadmap and strategic growth prioritiesNadella described the investment as Microsoftrsquos largest in AsiaIn a post on X Nadella said Thank you PM Narendra Modi for an inspiring discussion on Indiarsquos AI opportunity To support the nationrsquos ambitions Microsoft is committing USD 175 billionmdashour largest investment ever in Asiamdashto build the infrastructure skills and sovereign capabilities required for Indiarsquos AIfirst futureThank you PM narendramodi ji for an inspiring conversation on Indiarsquos AI opportunity To support the countryrsquos ambitions Microsoft is committing US175Bmdashour largest investment ever in Asiamdashto help build the infrastructure skills and sovereign capabilities needed forhellip pictwittercomNdFEpWzoyZmdash Satya Nadella satyanadella December 9 2025According to a Microsoft press release posted on X Together Microsoft and India are set to establish new benchmarks transitioning the country from digital public infrastructure to AI public infrastructure over the next decade We aim to create a future that is both equitable and uniquely Indian in scale and impactMicrosoftrsquos investment focuses on three key pillarsmdashscale skills and sovereigntymdashaligned with the Prime Minister Modirsquos vision of a comprehensive AI ecosystem promoting innovation and access at a national level it saidPuneet Chandok President Microsoft India and South Asia said Microsoft has been part of Indiarsquos fabric for more than three decades As the nation moves confidently into its AIfirst future we are proud to stand as a trusted partner in advancing the infrastructure innovation and opportunity that can power a billion dreams Building on the US3 billion investment announced in January 2025 our new US175 billion commitment and deep partnership across Indiarsquos technology ecosystem are focused on turning Indiarsquos AI ambition into impact for every citizen This transformation is anchored on three pillars hyperscale infrastructure to run AI at scale sovereignready solutions that ensure trust and skilling programs that empower every Indian to not just join the future but shape itA landmark moment for Indiarsquos AI journey We have just announced our largest investment in Asiamdashfocussed on scale skills and sovereignty Read the full announcement httpstcoFdzumnHB7Z satyanadella puneetckmdash Microsoft India and South Asia MicrosoftIndia December 9 2025The new investment will be used to continue to scale our cloud and AI infrastructure skilling initiatives and ongoing operations across India This includes our workforce of more than 22000 employees across Bengaluru Hyderabad Pune Gurugram Noida and other cities mdash representing the diversity of Microsoftrsquos businesses They drive every part of our product cycle from model development to engineering and product innovation Their work contributes to innovation across Microsoftrsquos AI stack mdash from infrastructure to app platforms to products mdash while operating hyperscale datacenters and delivering sales and support to customers nationwide These teams are not only powering Indiarsquos digital transformation but also delivering AI impact at scale globally mdash Copilot Studio Azure AI Search AI agents AI speech and translation Azure Machine Learning and more Every day they collaborate closely with Indiarsquos leading enterprises developers and institutions to unlock the promise of AI for the country the official statement saidIt said that one of the key priorities of our investment is building secure sovereignready hyperscale infrastructure to enable AI adoption in India At the heart of this effort is the significant progress being made at the India South Central cloud region based in Hyderabad ndash that is set to go live in mid2026 This will be our largest hyperscale region in India comprising three availability zones mdash roughly equivalent in size to two Eden Gardens stadiums combined