Microsoft has announced a significant investment of $17.5 billion in India, marking its largest-ever investment in Asia. The investment aims to advance the country's cloud and artificial intelligence (AI) infrastructure, skilling initiatives, and ongoing operations. This move underscores the growing global competition among major technology companies to expand in India, one of the world's fastest-growing digital markets.

Key Highlights of the Investment:

Expansion of Cloud and AI Infrastructure: Microsoft plans to establish its largest hyperscale presence in India with a new data center going live in mid-2026. The company will also expand its three existing regions in Chennai, Hyderabad, and Pune.
Skilling Initiatives: Microsoft is doubling its commitment to equip 20 million Indians with essential AI skills by 2030. The company has already trained 5.6 million people since January through its ADVANTA(I)GE India initiative, enabling over 125,000 individuals to secure jobs or start businesses.
Sovereign Cloud Solutions: Microsoft is introducing Sovereign Public Cloud and Sovereign Private Cloud for Indian customers, ensuring data residency and compliance with regulatory requirements.

Partnership with Indian Government:

Microsoft will work with the Ministry of Labour and Employment to integrate advanced AI capabilities into two flagship digital public platforms — e-Shram and the National Career Service. These platforms will offer AI-driven services to over 310 million informal workers, including multilingual support, AI-assisted job matching, predictive analytics, and automated résumé creation.

Microsoft's Commitment to India:

Microsoft Chairman and CEO Satya Nadella emphasized the company's commitment to India's AI future, stating that the investment will help build the "infrastructure, skills, and sovereign capabilities" needed for the country's growth. Indian Prime Minister Narendra Modi welcomed the investment, expressing optimism about India's potential in AI.

On an X post, Satya Nadella, Chairman and CEO at Microsoft said, "Thank you, PM Modi  ji, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, 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."