Microsoft has announced a huge $17.5 billion investment in India, its largest ever in Asia, aimed at making the country a global hub for artificial intelligence (AI) and cloud technology. The investment, planned over 2026–2029, is expected to accelerate digital transformation, create jobs, and strengthen India’s technology ecosystem.
This new funding adds to a $3 billion investment earlier in 2025, bringing Microsoft’s total commitment in India to $20.5 billion. CEO Satya Nadella thanked Prime Minister Narendra Modi for supporting discussions on India’s AI potential, calling the country a “land of tremendous opportunity.”
Microsoft plans to set up hyperscale data‑centres and launch a new cloud region in Hyderabad by mid-2026. These centres will offer faster, reliable cloud services to businesses, startups, and government agencies across India.
A key part of the plan is sovereign cloud services, secure, locally managed public and private clouds that meet India’s compliance and security requirements.
The company also aims to train 20 million Indians in AI and digital skills by 2030. It will work with government and industry partners to prepare the workforce for AI-driven jobs. AI will also be integrated into public platforms like e-Shram and the National Career Service (NCS), helping over 310 million informal workers with job matching, skill forecasting, résumé-building, and multilingual access.
Government officials welcomed the move as a strong vote of confidence in India’s technology potential. IT Minister Ashwini Vaishnaw said it reflects India’s growing role as a trusted technology partner, while Puneet Chandok, Microsoft President for India & South Asia, said the investment will “build infrastructure, spark innovation, and empower a billion dreams.”
This initiative will boost India’s AI capabilities, expand cloud access, and create millions of opportunities for workers and startups. By combining infrastructure development, skill-building, and public platform integration, Microsoft’s investment could reshape India’s technology landscape and make AI accessible to people across the country.
