Microsoft is set to invest $17.5 billion over four years to expand India’s cloud and artificial intelligence infrastructure, marking its largest investment in Asia. This builds on a previous $3 billion pledge made earlier this year and focuses on enhancing hyperscale infrastructure, integrating AI into government platforms, and boosting workforce skills.
The announcement followed a meeting between Microsoft CEO Satya Nadella and Prime Minister Narendra Modi, where they discussed India’s AI ambitions. Nadella thanked Modi on social media, saying the investment would “help build the infrastructure, skills, and sovereign capabilities needed for India’s AI first future.”
India has attracted significant AI and data centre investments lately, with Google pledging $15 billion and Amazon Web Services $8 billion. Modi highlighted the importance of this investment, saying, “The youth of India will harness this opportunity to innovate and leverage the power of AI for a better planet.”
Microsoft will expand its existing Sovereign Public and Private Cloud services across India and double its goal to train 20 million Indians in AI skills by 2030. The company also plans to integrate Azure AI into key digital platforms run by India’s Ministry of Labour and Employment and the National Career Service.
Ashwini Vaishnaw, India’s minister of Electronics and Information Technology, called the investment a sign of India’s growing role as a trusted global tech partner, accelerating its transition “from digital to AI public infrastructure.”
India is also advancing in semiconductor manufacturing, approving projects worth over $18 billion under the India Semiconductor Mission. Intel recently partnered with Tata Electronics to develop AI-focused chip products domestically, strengthening India’s chip ecosystem.