Web Desk (MNN); Global technology leader Microsoft announced on Tuesday that it will invest $17.5 billion to help build India’s artificial intelligence infrastructure, with CEO Satya Nadella calling it “our largest investment ever in Asia.”
Several major international companies have pledged significant investments in India this year, as the South Asian country is expected to exceed 900 million internet users by the end of 2025.
Nadella, in a post on X, said:
“To support the country’s ambitions, Microsoft is committing US$17.5 billion — our largest investment ever in Asia — to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI-first future.”
The announcement came after Nadella met Prime Minister Narendra Modi in New Delhi, thanking him for “an inspiring conversation on India’s AI opportunity.”
According to Microsoft, the investment will be made over four years.
The company said that together, Microsoft and India are positioned to “set new benchmarks and drive the country’s leap from digital public infrastructure to AI public infrastructure in the coming decade.”
One of the key priorities of the plan is to build secure, sovereign-ready hyperscale infrastructure that will accelerate AI adoption across India.
Microsoft added that its upcoming India South Central cloud region, based in Hyderabad, is central to this effort and will go live in mid-2026. The cloud facility spans twice the size of Kolkata’s iconic Eden Gardens stadium, which seats over 65,000 people.
The investment builds on Nadella’s earlier pledge this year of $3 billion for AI and cloud infrastructure in India.
Prime Minister Modi welcomed the announcement, saying he was “happy” that Microsoft had chosen India for its largest Asian investment.
“The youth of India will harness this opportunity to innovate and leverage the power of AI for a better planet,” Modi said on X.
“When it comes to AI, the world is optimistic about India.”
Tech Giants Expand Footprint in India
Global tech companies are rapidly increasing their presence in India, the world’s most populous nation and fifth-largest economy.
Artificial intelligence has become a special focus area.
US AI startup Anthropic revealed plans in October to open an office in India, and its CEO Dario Amodei met with Modi.
In the same month, Google announced a $15 billion investment over the next five years, including a massive data centre and AI hub.
OpenAI has also said it will open an office in India, with CEO Sam Altman noting that ChatGPT usage in the country had grown fourfold in the past year.
AI firm Perplexity announced a major partnership with Indian telecom giant Airtel in July, offering 360 million customers a free one-year subscription to Perplexity Pro.
Rising Digital Regulations Pose Challenge
India’s ambitions to become a global AI and technology hub are increasingly intersecting with tighter digital regulations.
Recent reports indicate that authorities are working on rules requiring smartphone manufacturers to enable satellite location tracking that users cannot disable — a proposal that has drawn criticism from rights groups.
