Microsoft CEO Satya Nadella has unveiled a landmark USD 17.5 billion investment to accelerate India’s AI and cloud ecosystem, the company’s largest-ever commitment in Asia. The announcement, shared after Nadella’s meeting with Prime Minister Narendra Modi, builds on an earlier USD 3 billion pledge and positions India as a central hub for the company’s next phase of AI expansion.

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What the investment means for India

1. India’s largest hyperscale region: A new cloud region in Hyderabad will go live around mid-2026, marking Microsoft’s biggest hyperscale build-out in the country.
2. Expansion of existing data centres: Upgrades have been planned across Chennai, Hyderabad and Pune, strengthening low-latency AI compute for businesses, public sector platforms as well as startups, said news agency ANI.
3. Sovereign cloud for compliance-heavy sectors: Introduction of Sovereign Public Cloud and Sovereign Private Cloud, tailored for India’s regulatory and data-governance needs, the ANI report stated.
4. AI skilling for millions: Microsoft has doubled its target and now aims to equip 20 million Indians with AI skills by 2030, with 5.6 million already trained since January 2025, the report added.
5. AI integration in government services: e-Shram and National Career Service will receive Azure OpenAI-powered enhancements, benefiting over 310 million informal workers through multilingual tools and smart job-matching, the report noted.
6. Reinforcing India’s AI-first positioning: Nadella and Microsoft identified scale, skills and sovereignty as the three pillars defining India’s AI journey, echoing PM Modi’s emphasis on India’s “AI opportunity”, according to Bloomberg and AFP reports.

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Microsoft’s massive commitment signals a decisive shift in global AI investment flows toward India. With hyperscale infrastructure, sovereign-ready cloud services and nationwide skilling programmes, the country is poised to deepen its role as a global AI hub.

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The multi-year build-out not only strengthens India’s digital backbone but also secures its place as a strategic partner for the world’s largest technology companies.