Microsoft to invest $17.5 billion in India over four years.
The investment will expand AI, cloud and data centre infrastructure.
Microsoft and the Indian government will collaborate on AI skilling and digital public platforms.
The world will be witnessing the largest investment from a US-based company in any Asian country with Microsoft’s announcement to invest $17.5 billion in India over the next four years. The announcement came as a result of a meeting between Microsoft Chairman and CEO Satya Nadella and Prime Minister Narendra Modi. The discussion covered topics related to the country’s digital growth along with its approach to artificial intelligence.
The company said the investment will be directed towards expanding cloud infrastructure, strengthening artificial intelligence capabilities and scaling up skilling initiatives across India. Microsoft also acknowledged India’s growing role in the global technology ecosystem and its focus on adopting AI across governance, industry and public services.
The announcement was made by the CEO himself through a post on X, in which he stated that Microsoft is committed to supporting India’s “AI-first future.” He also thanked PM Narendra Modi for providing valuable insights on India’s AI opportunities and for outlining the future vision for technology-driven growth in the country. PM Modi responded to the post by welcoming the announcement and said, “When it comes to AI, the world is optimistic about India!” The exchange suggests an alignment between the government’s policy priorities and Microsoft’s long-term plans in the country.
The commitment builds on the company’s earlier investments in India and will be spread between 2026 and 2029. It will also include the upcoming India South Central cloud region in Hyderabad, which is set to be operational in 2026, as the key focus of the investment ranges from the expansion of hyperscale cloud infrastructure to data centre capacity. The increased local capacity will support businesses, startups and government institutions that require secure, low-latency computing for AI applications, according to Microsoft.
Some of the major components of the investment include AI integration and skilling. The company will work with the Indian government to integrate AI tools into national digital platforms such as e-Shram and the National Career Service. This is expected to improve access to employment services through features such as AI-assisted job matching, multilingual support and digital skill development tools. Microsoft will also focus on expanding AI education and training programmes in India for developers, students and professionals, with plans to train more people in AI-related skills over the coming years.
The government views the investment as support for India’s ambition to become a global hub for artificial intelligence, while ensuring that AI systems are developed and deployed in line with national priorities. The Prime Minister has repeatedly highlighted the importance of building trusted digital public infrastructure and using technology to support inclusive growth in his speeches. These objectives were also discussed during his meeting with Nadella.
The announcement is expected to be followed by detailed project-level plans, regulatory clearances and execution schedules, which will be released in phases. Further collaboration details are likely to emerge as the initiative progresses, positioning the investment as a central part of India’s AI-focused growth strategy. [Rh]
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