Microsoft is set to drive AI infrastructure and upskilling programs to empower a billion dreams in India.
Microsoft has announced an investment of $17.5 billion over four years (CY 2026 to 2029) to expand its artificial intelligence (AI) and cloud infrastructure. This marks Microsoft’s largest investment in Asia. Satya Nadella announced the same through his X post.
The new funding builds on a previous commitment of $3 billion announced earlier this year, which is on track to be spent by the end of 2026. This investment will help expand Microsoft’s existing cloud and AI infrastructure, including its data center in Hyderabad.
Microsoft is also expanding its three existing regions in Chennai, Hyderabad, and Pune. This expansion is expected to increase the company’s total data center capacity in India to around 4.5 gigawatts by 2030.
Microsoft’s India Investment is also a Commitment to AI Upskilling
Besides expanding its AI infrastructure, Microsoft is also doubling its commitment by January 2025 to train 20 million Indians on the necessary AI skills by 2030. This project is expected to develop the technological skills of Indian talent and ensure that the nation does not lose its competitiveness in the AI world.
Its investment will also generate employment opportunities, especially in the technological field. The company’s Indian operations, ranging from engineering and product innovation to operations, are vital to powering India’s digital transformation while also contributing to global AI projects such as Copilot Studio, Azure AI Search, and Azure Machine Learning.
India's AI Journey and Global Impact
India’s journey into the world of AI comes at a critical juncture, as the country seeks to solidify its position as an AI-first nation. The government's focus on “AI public infrastructure” is central to this vision.
Shri Ashwini Vaishnaw, the Union Minister of Electronics & Information Technology, highlighted this in his statement, saying,
“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.”
Puneet Chandok, President of Microsoft India and South Asia, echoed these sentiments, emphasizing the importance of the partnership, stating,
“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."
This commitment is expected to lead to transformative change, not just within India but across the globe, as Microsoft’s technology impacts enterprises, developers, and institutions nationwide.
