Microsoft Announces $17.5 Billion Investment to Accelerate India’s AI Future; PM Modi Hails Move as Boost for a “Better Planet”

New Delhi, Dec 9 :
Global technology leader Microsoft has unveiled a massive $17.5 billion investment plan for India, to be deployed over four years (2026–2029), aimed at rapidly scaling the country’s artificial intelligence (AI) ecosystem. Prime Minister Narendra Modi welcomed the announcement, expressing confidence that India’s youth will turn this opportunity into innovations that contribute to a “better planet.”

In a statement, Microsoft said, “Today we are announcing our largest investment in Asia — $17.5 billion over four years — to advance India’s cloud and artificial intelligence (AI) infrastructure, skilling and ongoing operations. This builds on the $3 billion investment announced earlier this year, which will be fully deployed by the end of 2026.”

Nadella Meets PM Modi, Discusses India’s AI Roadmap

The investment announcement followed a meeting between Microsoft Chairman & CEO Satya Nadella and Prime Minister Modi in New Delhi, during Nadella’s multi-city AI tour of India.

“Thank you, Prime Minister Narendra Modi, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing US$17.5B—our largest investment ever in Asia—to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI-first future,” Nadella posted on X.

Responding to him, PM Modi wrote, “When it comes to AI, the world is optimistic about India! Had a very productive discussion with Mr. Satya Nadella. Happy to see India being the place where Microsoft will make its largest-ever investment in Asia.”

India Positioned as a “Frontier AI Nation”

According to Microsoft, India is at a defining point in its AI journey, poised to deliver impact at scale and lead globally. The company said the country’s rapid technological advancement is driving inclusive growth and economic transformation.

The new $17.5 billion commitment focuses on three pillars aligned with the Prime Minister’s AI vision:

• Scale – Expanding high-performance cloud and AI infrastructure

• Skills – Advancing training and digital skilling programmes

• Sovereignty – Building secure, sovereign-ready systems for the nation’s AI ecosystem

Major Infrastructure Expansion Across India

A significant portion of the investment will go toward strengthening Microsoft’s cloud and AI infrastructure, including:

• Establishing the India South Central region in Hyderabad, set to go live by mid-2026. It will be Microsoft’s largest hyperscale data centre region in India, comprising three availability zones and comparable in size to two Eden Gardens stadiums.

• Expanding existing data centre regions in Chennai, Hyderabad, and Pune to support low-latency, mission-critical AI applications for enterprises, startups, and public institutions.

Microsoft currently employs more than 22,000 people across Bengaluru, Hyderabad, Pune, Gurugram, Noida and other Indian cities. These teams contribute directly to global AI innovation across products such as Copilot Studio, Azure AI Search, AI agents, speech & translation systems, Azure Machine Learning, and more.

India Welcomes Microsoft’s Commitment

Union IT Minister Ashwini Vaishnaw said the investment underscores India’s emergence as a global, trusted technology partner.

“As AI reshapes the digital economy, India remains committed to innovation anchored in trust and sovereignty. Microsoft’s landmark investment signals India’s rise as a reliable technology partner for the world,” he said.

Microsoft India and South Asia President Puneet Chandok added that the company’s expanded commitment aims to convert India’s AI aspirations into real impact for every citizen.

“This transformation is anchored on hyperscale infrastructure, sovereign-ready solutions and wide-reaching skilling initiatives,” he said.