Microsoft, the global technology leader, revealed on Tuesday its plan to invest $17.5 billion in India over the next four years (2026-2029) to promote the spread of AI throughout the nation.
Prime Minister Narendra Modi emphasized that India’s youth “will seize this opportunity to innovate and utilize the power of AI for a better planet.”
“We are pleased to announce our largest investment in Asia — $17.5 billion over four years (CY 2026 to 2029) — to advance India’s cloud and artificial intelligence (AI) infrastructure, workforce education, and ongoing operations. This commitment follows our earlier announcement of a $3 billion investment made earlier this year, which we are on schedule to complete by the end of CY2026,” Microsoft stated.
This news followed a meeting between Microsoft Chairman and CEO Satya Nadella and Prime Minister Modi.
“I appreciate Prime Minister Narendra Modi for a motivating discussion about India’s AI potential. To support the nation’s goals, Microsoft is pledging US$17.5B—our largest investment ever in Asia—to aid in developing the necessary infrastructure, skills, and sovereign capabilities for India’s AI-driven future,” Nadella shared in a post on X.
In response to Nadella’s message, PM Modi remarked: “When it comes to AI, the world is hopeful about India!”
“I had a fruitful discussion with Mr. Satya Nadella. I am pleased to note that India will be the recipient of Microsoft’s largest-ever investment in Asia. The youth of India will capitalize on this opportunity to innovate and utilize the power of AI for a better planet,” PM Modi stated.
Microsoft indicated that India is at a critical juncture in its AI journey, characterized by widespread impact and determination to lead. As technology emerges as a catalyst for inclusive growth and economic change, the nation is becoming a leading player in AI.
Nadella is currently in India for a tour focused on AI. During the conversation with PM Modi, both leaders reviewed the nation’s AI strategy and growth objectives.
Microsoft’s investment in India is concentrated on three key areas—scale, skills, and sovereignty—in line with the Prime Minister’s vision of creating a holistic ecosystem that fosters AI innovation and accessibility at a national level, as stated by the company.
This new funding will be directed towards further enhancing Microsoft’s cloud and AI infrastructure, education initiatives, and long-term operations throughout India.
This involves the company’s team of over 22,000 employees in cities such as Bengaluru, Hyderabad, Pune, Gurugram, Noida, and others, representing the diverse nature of Microsoft’s operations. They are involved in all aspects of the company’s product development and innovation.
Their efforts support innovation across Microsoft’s entire AI ecosystem—from infrastructure and application platforms to final products—while managing hyperscale datacenters and providing sales and support to customers nationwide. These teams are not only fueling India’s digital transformation but also creating significant AI impact globally—through Copilot Studio, Azure AI Search, AI agents, AI speech and translation, Azure Machine Learning, and beyond.
Daily, they work closely with India’s top businesses, developers, and institutions to harness the potential of AI for the country, according to the Microsoft release.
A major focus of Microsoft’s investment is the establishment of secure, sovereign-ready hyperscale infrastructure to facilitate AI adoption in India. Central to this initiative is the substantial development taking place at the India South Central cloud region in Hyderabad, which is scheduled to launch in mid-2026.
This will be the largest hyperscale region for Microsoft in India, consisting of three availability zones—approximately equivalent in size to two combined Eden Gardens stadiums, as noted in the statement.
The company announced that it will also proceed with the expansion of its three operational data centre locations in Chennai, Hyderabad, and Pune.
This development offers organizations throughout India increased options and resilience, ensuring low-latency, critical performance for enterprises, startups, and public sector organizations.
Union Minister of Electronics & Information Technology Ashwini Vaishnaw stated: “As AI transforms the digital economy, India is dedicated to innovation based on trust and sovereignty. Microsoft’s significant investment indicates India’s emergence as a dependable technology partner globally. This collaboration will establish new standards and propel the country’s transition from digital public infrastructure to AI public infrastructure.”
Microsoft India and South Asia President Puneet Chandok mentioned: “Building on the $3 billion investment revealed in January 2025, Microsoft’s new commitment of $17.5 billion and strong collaboration within India’s technology ecosystem aim to convert India’s AI aspirations into tangible outcomes for every citizen. This transformation is centered around three key elements: hyperscale infrastructure for scalable AI operations, sovereign-ready solutions that maintain trust, and skill development programs that enable every Indian to not only participate in the future but also to influence it.“