Microsoft plans to invest $17.5 billion in India by 2029, marking its most significant investment in Asia.

On Tuesday (December 9), Microsoft revealed a significant $17.5-billion investment in India over the next four years, marking its largest commitment in Asia. This initiative aims to enhance cloud and artificial intelligence (AI) infrastructure, skilling initiatives, and operations in the country from 2026 to 2029. This new funding adds to the $3 billion announced earlier this year, which the company plans to fully allocate by the end of 2026.

This announcement followed discussions between Microsoft Chairman and CEO Satya Nadella and Prime Minister Narendra Modi in New Delhi on December 9, where they explored India’s AI roadmap and growth objectives.

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

The investment will enable Microsoft to create its largest hyperscale presence in India, with the new India South Central cloud region in Hyderabad set to launch in mid-2026. This region will feature three availability zones and will be approximately the size of two Eden Gardens stadiums. Additionally, the company will continue to enhance its existing data center regions in Chennai, Hyderabad, and Pune.

As part of its AI expansion plans, Microsoft announced the integration of Azure OpenAI capabilities into two digital public platforms run by the Ministry of Labour and Employment — e-Shram and the National Career Service. This initiative is expected to assist over 310 million informal workers, providing tools such as multilingual access, AI-supported job matching, automated resume generation, and predictive analytics on skills demand.

Moreover, Microsoft will double its skilling commitment, aiming to train 20 million Indians in AI skills by 2030. Under its ADVANTA(I)GE India initiative, the company has already trained 5.6 million individuals since January 2025.

The company also introduced new digital sovereignty solutions for Indian clients, including Sovereign Public Cloud and Sovereign Private Cloud powered by Azure Local, designed to support compliant, high-security workloads within India. Microsoft reaffirmed that Microsoft 365 Copilot will facilitate in-country data processing in India by the end of 2025.

Currently, Microsoft employs over 22,000 individuals across Bengaluru, Hyderabad, Pune, Gurugram, Noida, and other cities in India, focusing on AI model development, engineering, product innovation, data center operations, and customer support.

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