Satya Nadella Announces Microsoft’s $17.5 B Commitment To Build India’s AI Infrastructure

• A new hyperscale cloud region in Hyderabad, dubbed the “India South Central” cluster, is scheduled to go live by mid-2026.
• Microsoft will also increase capacity in existing data centers in Chennai, Hyderabad, and Pune to support cloud services.
• To meet regulatory and privacy requirements, Microsoft will offer “Sovereign Public Cloud” and “Sovereign Private Cloud” options in India.

Microsoft Corp. (MSFT) has committed a record‑breaking $17.5 billion to India, marking its biggest investment ever in Asia. 

In a post on the X platform, Microsoft CEO Satya Nadella said the investment will help India in its push to build out cloud and AI infrastructure, boost local digital skills, and reinforce India’s sovereign capacities in technology.

Earlier in 2025, Microsoft announced a $3 billion package to scale Azure cloud and AI services in India over two years, with plans to train 10 million people in AI and cloud skills by 2030. 

Microsoft’s stock inched 0.01% in Tuesday’s premarket. On Stocktwits, retail sentiment around the stock reclaimed in ‘bullish’ territory amid ‘high’ message volume levels. 

Big Push On AI Infrastructure And Data Centers

The investment will go toward expanding Microsoft’s data-center footprint nationwide. A new hyperscale cloud region in Hyderabad, dubbed the “India South Central” cluster, is scheduled to go live by mid-2026. 

The tech giant will also boost capacity in existing centers across Chennai, Hyderabad and Pune, aiming to deliver faster, more resilient cloud services for businesses, public-sector institutions and startups.

Ensuring Data Sovereignty

To meet regulatory and privacy requirements, Microsoft will offer “Sovereign Public Cloud” and “Sovereign Private Cloud” options in India. These services provide locally governed data-processing environments, compliance safeguards, and support for high-performance workloads, including GPU-based computing on Azure Local.

Microsoft also plans to deploy its Copilot productivity service with in-country data processing by the end of 2025, aligning with growing demand for data sovereignty in sectors such as government, finance, and healthcare. 

MSFT stock has gained over 16% in 2025 and over 9% in the last 12 months. 

Also See: Bill Gates Says Some Highly Valued AI Companies May Lose In the Long Run – Warns Many Firms ‘Won’t Be Worth That Much’

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