Microsoft commits $17.5 billion to AI in India
Hyperscale infrastructure, workforce development, and sovereign-ready cloud solutions are central to Microsoft’s commitment to making India a global AI leader.
The US tech giant, Microsoft, has announced its largest investment in Asia, committing US$17.5 billion to India over four years to expand cloud and AI infrastructure, workforce skilling, and operations nationwide.
An announcement that follows the US$3 billion investment earlier in 2025 and aims to support India’s ambition to become a global AI leader.
The investment focuses on three pillars: hyperscale infrastructure, sovereign-ready solutions, and workforce development. A new hyperscale data centre in Hyderabad, set to go live by mid-2026, will become Microsoft’s largest in India.
Expansion of existing data centres in Chennai, Hyderabad and Pune will improve resilience and low-latency performance for enterprises, startups, and public sector organisations.
Microsoft will integrate AI into national platforms, including e-Shram and the National Career Service, benefiting over 310 million informal workers. AI-enabled features include multilingual access, predictive analytics, automated résumé creation, and personalised pathways toward formal employment.
Skilling initiatives will be doubled to reach 20 million Indians by 2030, building an AI-ready workforce that can shape the country’s digital future.
Sovereign Public and Private Cloud solutions will provide secure, compliant environments for Indian organisations, supporting both connected and disconnected operations.
Microsoft 365 Copilot will process data entirely within India by the end of 2025, enhancing governance, compliance, and performance across regulated sectors. These initiatives aim to position India as a global AI hub powered by scale, skilling, and digital sovereignty.
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