Microsoft has unveiled its largest-ever investment in Asia, committing $17.5 billion to expand India’s cloud and artificial intelligence infrastructure over the next four years. The announcement was made by CEO Satya Nadella on X shortly after he met Prime Minister Narendra Modi in New Delhi, marking a major push to deepen Microsoft’s long-term presence in one of the world’s fastest-growing technology markets.
Nadella said the investment aims to help India build the essential “infrastructure, skills and sovereign capabilities” required to power its AI-focused future. His statement comes at a time when global tech giants are rapidly stepping up their presence in India, viewing the country as a strategic hub for innovation, talent and next-generation technology development.
The announcement highlights intensifying competition among major tech players. In October, Google revealed plans to invest $15 billion in India over the next five years to establish its first dedicated AI hub in the country. The facility, set to be located in Visakhapatnam, will be one of Google’s largest AI centers worldwide.
Nadella is currently on a three-day visit to India, during which he is meeting policymakers and participating in high-level discussions at AI-focused events in Bengaluru and Mumbai. The visit aligns with India’s aggressive national goals to become a global powerhouse in artificial intelligence, semiconductor manufacturing and advanced digital technologies. The government has rolled out substantial incentive packages designed to attract chipmakers and major cloud providers, support job creation and reduce dependence on imported technologies.
Prime Minister Modi echoed confidence in India’s tech ambitions, stating on X that “the world is optimistic about India” when it comes to AI adoption and innovation.
Microsoft’s new commitment significantly surpasses the company’s earlier pledge of investing $3 billion over two years to strengthen cloud capacity, build new data centers and support workforce skilling. The tech giant, which has been operational in India for more than thirty years, employs over 22,000 people across the country and continues to expand its digital infrastructure footprint.
According to Microsoft, its latest plan aims to dramatically scale operations and establish the company’s largest hyperscale presence in India. A new data center—expected to go live by mid-2026—will anchor this rapid expansion, supporting advanced computing workloads and further integrating India into Microsoft’s global cloud network.
