Microsoft has expanded its cloud and artificial intelligence infrastructure in India with the launch of a new cloud region in Hyderabad. The company announced the India South Central region on September 22, making it Microsoft’s fourth cloud region in the country as businesses and institutions increasingly turn to cloud computing and AI.
The Hyderabad facility joins Microsoft’s existing cloud regions in Pune, Chennai and Mumbai. With the addition, the technology company now has its largest hyperscale cloud infrastructure footprint in India. The expansion is aimed at meeting rising demand for computing, storage, cloud services and AI capabilities as organizations move beyond testing artificial intelligence toward broader deployment.
The new cloud region is part of Microsoft’s previously announced investment commitment of about $20.5 billion in India. The investment is focused on expanding cloud and AI infrastructure, developing technology skills and supporting the company’s broader operations in the country.
Puneet Chandok, president of Microsoft India and South Asia, said India is entering an important phase of its digital transformation. He pointed to the country’s growing role as a major source of global data and the need for infrastructure to keep pace with that expansion.
India currently produces nearly one-fifth of the world’s data but has only about 3% of global data center capacity, highlighting the gap between data generation and available infrastructure. The country has roughly 2 gigawatts of data center capacity at present, with that figure projected to reach between 12 and 14 gigawatts by 2035.
The anticipated growth is expected to come from businesses, government organizations and other institutions increasing their use of digital services and AI. As organizations begin deploying AI applications on a larger scale, demand for reliable computing power, data storage and cloud platforms is expected to increase.
Microsoft’s Hyderabad cloud region is therefore positioned to support the growing requirements of Indian customers using its cloud and AI services. The development also contributes to the wider expansion of India’s digital infrastructure, where increasing data generation and enterprise technology adoption are creating greater demand for hyperscale facilities.
The expansion underscores the growing connection between cloud infrastructure and India’s developing AI ecosystem, as companies and institutions seek the capacity needed to build, operate and scale increasingly data-intensive digital applications.
