Microsoft’s investment focuses on three key pillars—scale, skills, and sovereignty—aligned with the Prime Minister Modi’s vision of a comprehensive AI ecosystem promoting innovation and access at a national level, an official statement said
The announcement came following a meeting between Nadella and PM Modi. Pic/X (@satyanadella)
Microsoft Chairman and CEO Satya Nadella on Tuesday announced an investment of USD 17.5 billion in India to bolster the nation’s rapidly growing Artificial Intelligence (AI) infrastructure, an official statement said.
The announcement came following a meeting between Nadella and Prime Minister Narendra Modi, during which they discussed India’s AI roadmap and strategic growth priorities.
Nadella described the investment as Microsoft’s "largest in Asia."
In a post on X, Nadella said, "Thank you, PM Narendra Modi, for an inspiring discussion on India’s AI opportunity. To support the nation’s ambitions, Microsoft is committing USD 17.5 billion—our largest investment ever in Asia—to build the infrastructure, skills, and sovereign capabilities required for India’s AI-first future."
Thank you, PM @narendramodi ji, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing US$17.5B—our largest investment ever in Asia—to help build the infrastructure, skills, and sovereign capabilities needed for… pic.twitter.com/NdFEpWzoyZ
— Satya Nadella (@satyanadella) December 9, 2025
According to a Microsoft press release, posted on X, "Together, Microsoft and India are set to establish new benchmarks, transitioning the country from digital public infrastructure to AI public infrastructure over the next decade. We aim to create a future that is both equitable and uniquely Indian in scale and impact."
Microsoft’s investment focuses on three key pillars—scale, skills, and sovereignty—aligned with the Prime Minister Modi’s vision of a comprehensive AI ecosystem promoting innovation and access at a national level, it said.
Puneet Chandok, President, Microsoft India and South Asia, said, "Microsoft has been part of India’s fabric for more than three decades. As the nation moves confidently into its AI-first future, we are proud to stand as a trusted partner in advancing the infrastructure, innovation and opportunity that can power a billion dreams. Building on the US$3 billion investment announced in January 2025, our new US$17.5 billion commitment and deep partnership across India’s technology ecosystem are focused on turning India’s AI ambition into impact for every citizen. This transformation is anchored on three pillars: hyperscale infrastructure to run AI at scale, sovereign-ready solutions that ensure trust, and skilling programs that empower every Indian to not just join the future but shape it."
A landmark moment for India’s AI journey. We have just announced our largest investment in Asia—focussed on scale, skills and sovereignty. Read the full announcement: https://t.co/FdzumnHB7Z @satyanadella @puneetck
— Microsoft India and South Asia (@MicrosoftIndia) December 9, 2025
The new investment will be used to continue to scale our cloud and AI infrastructure, skilling initiatives and ongoing operations across India. This includes our workforce of more than 22,000 employees across Bengaluru, Hyderabad, Pune, Gurugram, Noida and other cities — representing the diversity of Microsoft’s businesses. They drive every part of our product cycle, from model development to engineering and product innovation. Their work contributes to innovation across Microsoft’s AI stack — from infrastructure to app platforms to products — while operating hyperscale datacenters and delivering sales and support to customers nationwide. These teams are not only powering India’s digital transformation but also delivering AI impact at scale globally — Copilot Studio, Azure AI Search, AI agents, AI speech and translation, Azure Machine Learning and more. Every day, they collaborate closely with India’s leading enterprises, developers and institutions to unlock the promise of AI for the country, the official statement said.
It said that one of the key priorities of our investment is building secure, sovereign-ready hyperscale infrastructure to enable AI adoption in India. At the heart of this effort is the significant progress being made at the India South Central cloud region, based in Hyderabad – that is set to go live in mid-2026. This will be our largest hyperscale region in India, comprising three availability zones — roughly equivalent in size to two Eden Gardens stadiums combined.
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