In a landmark announcement that cements India’s rise as a global AI powerhouse, Microsoft Chairman and CEO Satya Nadella has revealed a record-breaking $17.5 billion (Rs1.46 lakh crore) investment to supercharge the nation’s artificial intelligence and cloud infrastructure. This is Microsoft’s largest investment ever in Asia, signalling unprecedented confidence in India’s digital future.
The multi-year commitment — spanning 2026 to 2029 — was unveiled shortly after Nadella met Prime Minister Narendra Modi in New Delhi.
Posting on X, Nadella wrote:
“Thank you, PM @narendramodi ji, for an inspiring conversation on India’s AI opportunity… Microsoft is committing US$17.5B — our largest investment ever in Asia — to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI-first future.”
A Three-Pillar Vision: Scale, Skills, Sovereignty
Microsoft’s mega-investment is designed around three strategic pillars:
1. Scale: Building India’s Next-Gen AI Infrastructure
The company will accelerate India’s integrated AI roadmap by creating sovereign-ready hyperscale cloud systems, expanding next-gen data centers, and enhancing high-performance infrastructure accessible to enterprises, startups, and the public sector.
2. Skills: Empowering India’s Digital Workforce
Microsoft plans to intensify nationwide skilling initiatives, expanding India’s already strong AI talent ecosystem.
More than 22,000 Microsoft employees across Bengaluru, Hyderabad, Pune, Noida, and Gurugram already contribute to innovations like:
Copilot Studio
Azure AI Search
AI agents
Speech & translation models
Azure Machine Learning
3. Sovereignty: Strengthening Secure and Responsible AI
A significant portion of the investment will focus on secure, compliant, transparent AI infrastructure — designed to support India’s aspirations for data sovereignty and digital independence.
A New Hyperscale Cloud Region in Hyderabad
A highlight of the announcement is Microsoft’s plan to create a massive new cloud region —
“India South Central Cloud Region” (Hyderabad)
●launching by mid-2026.
Key features include:
●Three availability zones
●Spread across an area equivalent to two Eden Gardens stadiums
●Largest hyperscale cloud region ever built by Microsoft in India
This comes alongside expansions of existing data centers in Chennai, Pune, and Hyderabad, boosting operational resilience and reducing latency for millions of users.
Boosting India’s Position in the Global AI Race
Nadella’s announcement is being seen as a strategic endorsement of India’s digital economy, talent pool, and policy environment.
The investment also follows Microsoft’s earlier January 2025 commitment of $3 billion — making India one of Microsoft’s most important global territories for AI innovation.
The mega-infusion of Rs 1.46 lakh crore is expected to:
●Transform India’s cloud and AI infrastructure
●Create high-skilled jobs
●Enable sovereign and secure AI adoption
●Strengthen India’s global competitiveness
●Accelerate economic growth across industries
A Defining Moment for India’s AI Future
With this historic commitment, Microsoft has positioned India at the heart of its global AI strategy. The investment reaffirms the world’s confidence in India’s role as a future AI superpower, empowered by technology, talent, and transformational leadership.
The message from Satya Nadella is clear:
India is not just participating in the AI revolution — it is leading it.
