By Alice Chambers |
Microsoft is investing $17.5 billion in India – its largest investment in Asia – to expand the country’s cloud infrastructure, integrate Microsoft AI into public sector platforms, and provide 20 million people with AI skills by 2030.
The investment will be over four years (2026-2029), builds on Microsoft’s previous investment of $3 billion in January 2025, and will focus 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,” according to Puneet Chandok, president of Microsoft India and South Asia.
To improve India’s cloud infrastructure, Microsoft will open a new cloud region in Hyderabad called ‘India South Central’ in mid-2026. It will be the largest hyperscale region in India, comprising three availability zones. Plus, Microsoft will continue to expand three existing operational data centre regions in Chennai, Hyderabad and Pune.
The investment is also part of a partnership between Microsoft and India’s Ministry of Labour and Employment to enhance the government’s platforms, e-Shram and the National Career Service (NCS). Built on Microsoft Azure, e-Shram connects the public with 18 welfare schemes and has contributed to expanding India’s social protection coverage. With access to AI-powered tools in Azure OpenAI Service, e-Shram and NCS now offer features such as multilingual access, AI-assisted job matching, predictive pathways toward employment, automated resume creation and more.
“We welcome Microsoft’s commitment to an AI-first future and to contribute towards enhancing social security for India,” said Dr Mansukh Mandaviya, India’s minister of labour and employment, and youth affairs and sport. “Furthermore, Microsoft’s initiative to encourage its wider ecosystem of partners and customers to participate as job providers or stakeholders on the NCS portal reflects its deep commitment to strengthening its relationship with India and driving inclusive growth.”
Microsoft’s Satya Nadella with Dr Mansukh Mandvaiya in New Delhi
Microsoft is also doubling its commitment from January 2025 to equip 20 million Indians with essential AI skills by 2030.
“[I’m] happy to see India being the place where Microsoft will make its largest-ever investment in Asia,” said India’s Prime Minister Narendra Modi. “The youth of India will harness this opportunity to innovate and leverage the power of AI for a better planet.”