Microsoft has unveiled a $17.5 billion investment plan for India, marking the company’s most significant financial commitment in Asia and accelerating its strategy to support the nation’s expansion of AI, cloud, and digital public infrastructure. The four-year initiative, spanning 2026 through 2029, is designed to strengthen hyperscale infrastructure, advance nationwide AI adoption, and deepen the company’s presence across the country’s technology ecosystem.
This new allocation follows Microsoft’s earlier $3 billion investment announced in early 2025, which the company expects to complete by the end of 2026. Together, the combined $20.5 billion commitment positions India as one of Microsoft’s most strategically significant global markets, backed by surging AI adoption, growing digital connectivity, and supportive government policy.
The announcement came after Microsoft Chairman and CEO Satya Nadella met with India’s Prime Minister Narendra Modi in New Delhi as part of the India AI tour. Discussions focused on India’s national AI roadmap, digital public infrastructure, and long-term workforce development needs. Microsoft said its investment strategy is structured around three primary pillars: scale, skills, and sovereignty.
A significant component of the investment is the expansion of hyperscale cloud infrastructure. Microsoft will bring online its largest datacenter region in India, the India South Central region in Hyderabad, expected to go live in mid-2026. The company will also continue expanding its current presence in Chennai, Hyderabad, and Pune to ensure low-latency and mission-critical capabilities across enterprises, startups, and public sector organizations.
Microsoft also announced new AI integrations for the e-Shram and National Career Service platforms, which together support more than 310 million informal workers in India. These enhancements, powered by Azure OpenAI Service, include multilingual services, AI-driven job matching, predictive analytics, and automated resumé generation.
On the workforce front, Microsoft doubled its skilling commitment to train 20 million people in India by 2030. Through its ADVANTA(I)GE India and Elevate programs, the company has already trained 5.6 million individuals since January 2025, surpassing early milestones and contributing to employment and entrepreneurial opportunities for more than 125,000 people.
The company further introduced new digital sovereignty offerings, including Sovereign Public Cloud and Sovereign Private Cloud, designed specifically for Indian regulatory needs. Additionally, Microsoft 365 Copilot will offer in-country data processing in India by the end of 2025, making the country one of the few global markets to receive this capability.
With over 22,000 employees across major Indian cities contributing to Microsoft’s global AI and cloud platforms, the company emphasized that the new investment strengthens an ecosystem already central to its product development, engineering, and service delivery.
The initiative aims to support India’s transition from digital public infrastructure to AI public infrastructure, reinforcing the nation’s ambitions to lead global AI innovation while expanding equitable access to technology and economic mobility.
KEY QUOTES:
“As AI reshapes the digital economy, India remains committed to innovation anchored in trust and sovereignty. Microsoft’s landmark investment signals India’s rise as a reliable technology partner for the world. This partnership will set new benchmarks and drive the country’s leap from digital public infrastructure to AI public infrastructure.”
Shri Ashwini Vaishnaw, Union Minister of Electronics and Information Technology
“Microsoft has been part of India’s fabric for more than three decades. As the nation moves confidently into its AI-first 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 US$3 billion investment announced in January 2025, our new US$17.5 billion commitment and deep partnership across India’s technology ecosystem are focused on turning India’s AI ambition into impact for every citizen. This transformation is anchored on three pillars: hyperscale infrastructure to run AI at scale, sovereign-ready solutions that ensure trust, and skilling programs that empower every Indian to not just join the future but shape it.”
Puneet Chandok, President, Microsoft India and South Asia
