Microsoft chairman and CEO Satya Nadella, who is on a visit to India, has announced the technology giant’s plans to invest US$ 3 billion in India over the next two years. Microsoft’s investment will enable development of cloud and Artificial Intelligence (AI) infrastructure, including the establishment of new data centers. The company will also train 10 million people over the next five years with AI skills.
Satya Nadella, chairman and CEO, Microsoft said, “India is rapidly becoming a leader in AI innovation, unlocking new opportunity across the country. The investments in infrastructure and skilling we are announcing today reaffirm our commitment to making India AI-first, and will help ensure people and organizations across the country benefit broadly.
Nadella had met with Indian Prime Minister Narendra Modi the previous day. India has ambitious AI related plans and even has an IndiaAI Mission that aims to build a comprehensive ecosystem that fosters AI innovation by democratizing computing access, enhancing data quality, developing indigenous AI capabilities, attracting top AI talent, enabling industry collaboration, providing startup risk capital, ensuring socially impactful AI projects, and promoting ethical AI. Microsoft hopes to play a key role in India’s AI ecosystem.
Puneet Chandok, president, Microsoft India and South Asia said, “Today’s announcement strengthens our belief in India’s potential and our resolve to equip the country with the resources and future-ready skills needed to excel in the global marketplace. We will continue to use AI to unlock possibilities for the next few decades and ensure communities across the country have access to the compute they need to prosper in the AI era.”
Microsoft already has three data center regions in the market, and the fourth ready to go live in 2026. This investment aims to develop a scalable AI computing ecosystem to meet the growing demands of India’s rapidly expanding AI start-ups and research community.
Microsoft set up its India operations in 1990, and in 1998, set up an India Development Center (IDC) in Hyderabad, which serves as IDC’s main campus today, while two more are located in Bengaluru and Noida. Apart from this it has data center regions in Mumbai and Chennai, and it also recently acquired a 48-acre land parcel in Hyderabad where it reportedly plans to build a data center. In September 2024, it reportedly acquired a land parcel in Pune, near Mumbai, with plans to build a data center there.
