Microsoft is making a major long-term bet on India with a new investment of 17.5 billion dollars planned for 2026 to 2029. This comes on top of the 3 billion dollars announced earlier in 2025, making it the company’s largest investment in Asia so far. The commitment follows Satya Nadella’s meeting with Prime Minister Narendra Modi, who said he was glad to see India becoming the center of Microsoft’s expansion in the region.
The company has set three clear priorities for this investment: scale, skills and sovereignty. A big part of the funding will go toward expanding India’s cloud and AI infrastructure. This includes the upcoming India South Central cloud region in Hyderabad, which is expected to go live in mid-2026 with three availability zones. Microsoft will also strengthen its existing cloud regions in Chennai, Hyderabad and Pune, and introduce sovereign cloud options designed for India’s regulatory needs. By the end of 2025, Microsoft 365 Copilot will process sensitive data within India, which is a key requirement for several sectors.
The company is also working to bring AI into public digital platforms. This includes support for e-Shram and the National Career Service to help more than 310 million informal workers. Features like multilingual access, job matching and automated resumé creation aim to make these platforms more accessible and useful. Puneet Chandok, president of Microsoft India and South Asia, said the goal is to turn India’s AI ambition into real impact for people across the country. This aligns with the government’s view of India moving from digital public infrastructure to AI public infrastructure, as noted by Union Minister Ashwini Vaishnaw.
Microsoft’s expanded commitment signals how central India has become to the global cloud and AI landscape, both as a growth market and as a technology hub.
