Microsoft has introduced a $17.5bn funding in India, set to be deployed over 4 years from 2026 to 2029.
The initiative goals to develop the nation’s cloud and AI infrastructure, help workforce coaching, and broaden ongoing operations.
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It follows an earlier dedication of $3bn introduced this yr, which Microsoft expects to spend by the tip of 2026.
The most recent announcement was made after Microsoft chairman and CEO Satya Nadella met with Indian Prime Minister Narendra Modi to debate the nation’s priorities for AI improvement.
India’s Electronics and Data Expertise Minister Ashwini Vaishnaw mentioned: “As AI reshapes the digital financial system, India stays dedicated to innovation anchored in belief and sovereignty.
“Microsoft’s landmark funding alerts India’s rise as a dependable know-how companion for the world. This partnership will set new benchmarks and drive the nation’s leap from digital public infrastructure to AI public infrastructure.”
Microsoft’s funding focuses on increasing infrastructure, growing digital expertise, and supporting digital sovereignty according to India’s AI aims.
A significant a part of the funding will go in the direction of growing the India South Central cloud area in Hyderabad, scheduled to launch in mid-2026.
This website could have three availability zones and would be the firm’s largest hyperscale area within the nation. Microsoft may also proceed increasing its present knowledge centre areas in Chennai, Hyderabad, and Pune.
The corporate employs greater than 22,000 individuals throughout Indian cities, together with Bengaluru, Gurugram, Hyderabad, Noida and Pune.
These groups work on AI mannequin improvement, engineering, product innovation, and help providers. Their contributions embrace working datacentres and offering AI options comparable to Copilot Studio, Azure AI Search, and Azure Machine Studying.
Microsoft has additionally introduced plans to combine superior AI options into e-Shram and the Nationwide Profession Service (NCS), two digital public platforms operated by the Indian Ministry of Labour and Employment.
These enhancements are meant to offer multilingual entry, AI-assisted job matching, predictive analytics for expertise demand, automated resumé creation, and personalised job pathways for casual staff.
By way of workforce improvement, Microsoft has doubled its unique dedication by aiming to equip 20 million Indians with AI expertise by 2030.
By means of its ADVANTA(I)GE India initiative run by Microsoft Elevate, 5.6 million individuals have been skilled since January 2025.
The corporate reported that greater than 125,000 people have discovered employment or began companies via these programmes.
For digital sovereignty wants, Microsoft launched Sovereign Public Cloud and Sovereign Non-public Cloud choices for Indian prospects. Sovereign Public Cloud permits organisations to make use of Azure’s built-in compliance instruments inside Microsoft’s Indian areas.
Powered by Azure Native, Sovereign Non-public Cloud helps each related and disconnected operations and offers entry to high-performance computing assets comparable to Nvidia GPUs.
Moreover, Microsoft 365 Copilot is anticipated to supply in-country knowledge processing in India by the tip of this yr.
This implies Copilot prompts and responses shall be dealt with inside India’s borders underneath regular operations.
Microsoft India and South Asia president Puneet Chandok mentioned: “Microsoft has been a part of India’s material for greater than three a long time. Because the nation strikes confidently into its AI-first future, we’re proud to face as a trusted companion in advancing the infrastructure, innovation and alternative that may energy a billion desires.”
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