Business & Startups/Markets & Economy

Microsoft Bets Big on India: $17.5 Billion Investment to Fuel AI Revolution

Microsoft announces a historic $17.5 billion investment in India to expand data centers in Chennai, Hyderabad, and Pune. The tech giant also plans to train 20 million Indians in AI skills by 2030, reinforcing its commitment to India's digital future.

Yasiru Senarathna2025-12-11
Microsoft CEO Satya Nadella speaking at a recent event in India
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Microsoft has announced a historic $17.5 billion investment in India, marking its largest commitment to the region to date. This massive capital injection will supercharge the company's cloud and AI infrastructure, specifically expanding its three existing data center regions in Chennai, Hyderabad, and Pune. additionally, a new "South Central" cloud region in Hyderabad is set to go live by mid-2026.


Beyond infrastructure, the tech giant is doubling down on human capital. Under its ADVANTA(I)GE INDIA initiative, Microsoft has set an ambitious target to provide AI skills training to 20 million Indians by 2030. This move aims to prepare a future-ready workforce capable of driving India’s digital economy.


Microsoft Chairman and CEO Satya Nadella highlighted the strategic importance of this expansion, stating, "We are very excited about our India South Central cloud region... We’re thrilled about all the data center capacity that is coming live." He further emphasized the goal of building "sovereign capabilities" for India's AI-first future, noting that the company is "doubling our commitment" to ensure equitable access to opportunity across the nation.

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