Microsoft Commits $17.5 Billion to India for AI and Cloud Infrastructure Expansion Through 2029

Microsoft Corporation has unveiled a massive commitment to India, earmarking 17.5 billion US dollars for development over the next four years. This significant investment marks the largest single outlay by the company across the entire Asian continent. The funding is strategically allocated for the period spanning 2026 through 2029, focusing intensely on accelerating the build-out of artificial intelligence (AI) infrastructure and dramatically expanding digital skills training programs nationwide. This substantial capital infusion builds upon an earlier pledge made in January 2025, which committed 3 billion dollars intended for deployment by the close of the 2026 calendar year.

The announcement was made by Microsoft CEO Satya Nadella following a high-level meeting with India’s Prime Minister Narendra Modi in New Delhi. This engagement formed a key part of Nadella’s ongoing India AI tour. The investment strategy is meticulously aligned with the Prime Minister’s overarching vision, centering on three core pillars: Scale, Skills, and Sovereignty. The ultimate goal is to facilitate India’s transformation from relying on a foundational digital public infrastructure to one powered by AI over the coming decade, thereby engineering a more equitable future that reflects India's unique scale and global influence.

Regarding the 'Scale' component, Microsoft is prioritizing the establishment of hyper-scale infrastructure capabilities. A major development in this area is the India South Central cloud region, located in Hyderabad, which is slated for launch in mid-2026. Once operational, this will become the company’s largest hyper-scale region within India. Furthermore, Microsoft intends to continue bolstering its existing footprint by expanding the three operational data center areas already established in Chennai, Hyderabad, and Pune.

In terms of 'Skills,' Microsoft is effectively doubling its earlier commitment. The company is now aiming to equip a staggering 20 million Indian citizens with essential AI competencies by the year 2030. Through the ADVANTA(I)GE India initiative, managed via Microsoft Elevate, 5.6 million individuals have already received training since January 2025, putting them ahead of the initial target of 10 million by 2030. Puneet Chandok, President of Microsoft for India and South Asia, emphasized the dedication to broadening access to AI tools for all segments of society. This includes extending benefits to approximately 310 million informal workers by integrating AI capabilities directly into the Ministry of Labour and Employment’s digital public platforms, specifically e-Shram and the National Career Service (NCS).

The 'Sovereignty' aspect of the investment focuses on deploying Sovereign Public Cloud and Sovereign Private Cloud solutions specifically tailored for Indian clientele. This will grant organizations greater autonomy and control over their sensitive data, ensuring rigorous adherence to local regulatory mandates. Additionally, a portion of these funds will be dedicated to upskilling over 22,000 Microsoft employees based in the republic who are actively engaged in developing AI products and maintaining critical data center operations. Prime Minister Modi expressed considerable optimism regarding India's burgeoning role in the AI landscape, noting that the nation’s youth are seizing this technological moment to drive significant innovation.