Microsoft’s $17.5B Investment in India: Supercharging AI Infrastructure and Skills Training

Microsoft’s $17.5 Billion Investment in India for AI Infrastructure

Microsoft recently announced its plan to invest $17.5 billion in India, marking its largest investment in Asia. The investment is aimed at enhancing the country’s AI infrastructure and diffusion.

This substantial funding, scheduled between 2026 and 2029, follows an earlier commitment of $3 billion made earlier in the year by Microsoft. The focus of this investment is to advance India’s cloud and AI infrastructure, skilling, and ongoing operations.

Microsoft’s vision is to assist India in transitioning from “digital public infrastructure to AI public infrastructure” over the next decade, aiming for a future that is both equitable and uniquely Indian in its scale and impact.

As part of this initiative, Microsoft CEO Satya Nadella is currently in India for a multi-city “India AI” tour. He met with Prime Minister Narendra Modi in New Delhi and is set to deliver a keynote address titled “Leading in the New Age of AI”.

The investment will primarily focus on three key areas:

• Scale: Microsoft plans to build hyperscale infrastructure to facilitate AI adoption in India. The India South Central cloud region, based in Hyderabad, is expected to go live in mid-2026. Additionally, Microsoft will expand its operational data center regions in Chennai, Hyderabad, and Pune.
• Skills: Microsoft is committed to equipping 20 million Indians with essential AI skills by 2030, doubling its initial January commitment. To date, the company has already trained 5.6 million individuals, with over 125,000 benefiting from work or entrepreneurial opportunities.
• Sovereignty: Microsoft will introduce Sovereign Public Cloud and Sovereign Private Cloud services for Indian customers, offering greater control over data, compliance, and operational sovereignty. These services will address data residency, regulatory compliance, governance, and operational isolation.

Furthermore, Microsoft announced that 310 million informal workers in India will benefit from advanced AI capabilities integrated into key digital public platforms of the Ministry of Labour and Employment.

With a workforce of 22,000 employees across various Indian cities, Microsoft is deeply embedded in the country’s technological landscape.

In addition to its India investment, Microsoft President Brad Smith revealed new commitments to Canada, injecting $5.4 billion over the next two years to enhance digital and AI infrastructure in the country. The goals for Canada mirror those set for India, focusing on skills training and digital sovereignty.