Microsoft Invests $3 Billion in India AI and Cloud Infrastructure

Microsoft Corporation has announced a historic $3 billion investment in India over the next two years to expand its artificial intelligence and cloud computing infrastructure, marking the largest single technology investment by a US company in the country.

The announcement was made by Microsoft CEO Satya Nadella during his visit to New Delhi, where he met Prime Minister Narendra Modi and discussed the role of AI in India's economic transformation.

"India is not just a market for Microsoft — it is a partner in building the future of technology. The talent, the scale, and the ambition here are unparalleled," Nadella said at a press conference at the India Habitat Centre.

The investment will fund construction of two new hyperscale data centres in Hyderabad and Pune, creation of an AI skilling programme targeting 10 million Indians, and expansion of the Azure cloud platform for Indian government and enterprise clients.

Microsoft will also establish an AI research lab in Bengaluru focused on developing large language models for Indian languages including Hindi, Tamil, Telugu, Bengali, and Marathi.

The announcement follows similar large investments by Google ($2 billion) and Amazon Web Services ($1.5 billion) in India's cloud infrastructure this year, reflecting growing competition for the Indian cloud market projected to reach $24 billion by 2028.