Microsoft has pledged to invest USD 17.5 billion in India between 2026 and 2029 to bolster the country’s cloud infrastructure, artificial intelligence (AI) capabilities, digital skilling, and sovereign-ready technology infrastructure. 

The announcement was made by Satya Nadella, Chairman and CEO of Microsoft, following his meeting with Narendra Modi, Prime Minister of India. Nadella described this as Microsoft’s largest-ever investment in Asia, aimed at supporting India’s “AI-first” future. 

This new commitment builds on an earlier USD 3 billion investment announced in January 2025, which Microsoft said it expects to fully deploy by the end of 2026. In total, the combined commitment to India now stands at USD 20.5 billion. 

Under the plan, Microsoft intends to scale up cloud and AI infrastructure across the country, expand its existing operations, which include more than 22,000 employees in cities such as Bengaluru, Hyderabad, Pune, Gurugram and Noida, and set up the company’s largest hyperscale data-centre region in India. The new region, based in Hyderabad, is expected to go live around mid-2026. 

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In addition to infrastructure, the investment will support widespread digital skilling initiatives, helping build local talent and enabling industries and government to leverage AI at scale. 

The move is seen as a major vote of confidence in India’s potential as a global AI and technology hub. It aligns with the government’s push for digital transformation and sovereign-capable digital infrastructure, and is expected to accelerate the adoption of AI across sectors, including enterprise, public services, healthcare, education, and more.

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