Microsoft Commits $17.5B to India’s AI Future

Our largest investment in Asia; comes on top of the earlier US $3 billion investment
We will have the largest hyperscale presence in India with our new datacenter going live mid-2026
India’s 310 million informal workers to benefit from Microsoft AI’s integration into e-Shram and National Career Service (NCS) platforms
Doubling our skilling commitment to 20 million by 2030

Expanding Infrastructure for AI

The investment will support the development of secure, sovereign-ready hyperscale infrastructure across India. Central to this plan is the India South Central cloud region in Hyderabad, scheduled to go live in mid-2026. This facility will be Microsoft’s largest in the country, comprising three availability zones with capacity equivalent to two Eden Gardens stadiums. Existing data center regions in Chennai, Hyderabad, and Pune will also be expanded to provide greater resilience and low-latency performance for enterprises, startups, and public institutions.

Microsoft’s workforce of more than 22,000 employees across major Indian cities will play a key role in this expansion. Teams contribute to every stage of product development, from AI model creation to engineering and customer support. Their work powers services such as Copilot Studio, Azure AI Search, and Azure Machine Learning. By scaling infrastructure, Microsoft aims to deliver both domestic and global impact through India’s growing role in AI innovation.

AI at Population Scale

A major focus of the initiative is integrating AI into national digital platforms. Microsoft is working with the Ministry of Labour and Employment to embed AI capabilities into e-Shram and the National Career Service. These platforms serve over 310 million informal workers, connecting them to welfare schemes and employment opportunities. Built on Azure’s cloud infrastructure, they now offer multilingual access, AI-assisted job matching, predictive analytics, and automated résumé creation.

The collaboration highlights how AI can enhance social protection and employment services. India’s coverage of informal workers has grown significantly, from 24% in 2019 to 64% in 2025 according to ILO estimates. By applying AI at scale, the country is strengthening its digital public infrastructure. Microsoft’s involvement underscores the potential of technology to improve accessibility and efficiency for millions of citizens.

Building Skills and Ensuring Sovereignty

Developing an AI-ready workforce is another pillar of the investment. Microsoft has doubled its earlier commitment, aiming to equip 20 million Indians with AI skills by 2030. Through the ADVANTA(I)GE India program, 5.6 million people have already been trained since January 2025, with more than 125,000 securing jobs or entrepreneurial opportunities. These initiatives are designed to ensure equitable access to digital skills across the population.

Digital sovereignty is also a priority. Microsoft is introducing Sovereign Public Cloud and Sovereign Private Cloud solutions tailored for Indian customers. These offerings provide compliance guardrails, governance controls, and support for disconnected operations. Azure Local now integrates advanced hardware including NVIDIA GPUs, while Microsoft 365 Local delivers secure productivity tools within India’s borders. By the end of 2025, Microsoft 365 Copilot will process data entirely in-country, making India one of the first global markets to receive this capability.