Microsoft Corp (NASDAQ:MSFT) will pour $17.5 billion into expanding India’s artificial intelligence infrastructure, its biggest investment in Asia, according to chief executive Satya Nadella.
The money will be deployed over four years and centres on a new hyperscale cloud region in Hyderabad, due to launch in mid-2026 and billed as being twice the size of Kolkata’s Eden Gardens cricket stadium.
Microsoft said the programme is designed to build the infrastructure, skills base and “sovereign capabilities” needed for an AI-driven economy, following an earlier $3 billion pledge for cloud and AI services.
Hyderabad-born Nadella announced the move after meeting Narendra Modi, the prime minister of India, who said he expects the country’s young population to power a new wave of AI innovation.
India’s fast-growing digital market, set to exceed 900 million users this year, is drawing global tech groups. Google plans to invest $15 billion, Anthropic and OpenAI are opening local offices, and Perplexity has partnered with telecoms group Airtel.
Modi also held talks with Intel and Cognizant. Intel chief Lip-Bu Tan said the company backs India’s semiconductor ambitions, while Cognizant discussed AI adoption and skills.
India wants to position itself as an AI hub, though proposed rules, such as mandatory, non-disableable satellite tracking on smartphones, have raised concerns among rights groups