Satya Nadella, CEO of Microsoft, has announced that the company will invest US $17.5 billion over the next four years (2026–2029) to help build and expand India’s AI and cloud-computing infrastructure — marking Microsoft’s largest ever investment in Asia.

Key Highlights

• Microsoft pledges US $17.5 billion by 2029 toward India’s AI and cloud infrastructure development.
• Investment includes hyperscale data centers, “sovereign cloud” roll-out, and training 20 million Indians in AI skills by 2030.

This initiative aims to bolster three key pillars: scale — by building extensive data-centers and cloud infrastructure, skills — by training millions in AI, and sovereignty — ensuring data compliance and secure cloud solutions for India.

A major component is the development of a new hyperscale cloud region in Hyderabad, expected to go live by mid-2026, which will become Microsoft’s largest cloud region in India. Existing data-centre hubs in cities like Chennai, Hyderabad and Pune will also be expanded to strengthen AI computing capabilities nationwide.

Beyond infrastructure, Microsoft plans to significantly scale up its skilling efforts — aiming to train 20 million Indians in AI skills by 2030, an increase over earlier commitments. As of early 2025, over 5.6 million individuals have already undergone training under this initiative.

Additionally, the investment supports secure, compliant cloud services tailored for regulated sectors through offerings like “Sovereign Public Cloud” and “Sovereign Private Cloud,” addressing data-localization and regulatory requirements in India.

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In sum, Microsoft’s massive funding push into AI and cloud infrastructure positions India as a major global hub for AI, while also reinforcing digital sovereignty, skills development, and nationwide access to advanced computing capabilities.