In a landmark announcement that signals India's emergence as a global AI powerhouse, Microsoft has unveiled its largest-ever investment in Asia, a staggering $17.5 billion commitment to India over the next four years (2026-2029). This transformative investment, revealed during Microsoft Chairman and CEO Satya Nadella's meeting with Prime Minister Narendra Modi, aims to accelerate the nation's journey from digital public infrastructure to AI public infrastructure.

Building on Strong Foundations

Microsoft’s new commitment builds on the $3 billion investment announced in January 2025, which remains on track for full deployment by the end of 2026. Together, these investments signal Microsoft’s confidence in India’s potential to lead the global AI revolution. With over three decades in India and 22,000 employees across major cities, Microsoft teams are not only supporting India’s digital transformation but contributing to global innovation across Copilot Studio, Azure Machine Learning, and more.

Three Pillars of Transformation

Microsoft's investment strategy centers on three critical pillars: Scale, Skills, and Sovereignty, perfectly aligned with Prime Minister Modi's vision for democratizing AI access across India's vast population.

1. Scale: Building India’s AI Infrastructure Backbone

• Largest Hyperscale Region: The India South Central cloud region in Hyderabad, Microsoft’s largest in the country goes live mid-2026 with three availability zones and a footprint the size of two Eden Gardens stadiums.
• Infrastructure Expansion: Existing regions in Chennai, Hyderabad, and Pune will be expanded to ensure more resilience, choice, and low-latency performance.
• Mission-Critical Operations: This infrastructure will support enterprises, startups, and the public sector with advanced, secure AI capabilities.

2. Skills: Creating an AI-Ready Workforce

• Doubled Training Target: Microsoft will equip 20 million Indians with AI skills by 2030, up from the earlier target of 10 million.
• Fast Progress: Through the ADVANTA(I)GE initiative, 5.6 million people have been trained since January 2025.
• Real Impact: Over 125,000 individuals have secured jobs or launched businesses, underscoring the economic value of skilling initiatives.

3. Sovereignty: Ensuring Trust and Compliance

• Sovereign Cloud Options: New Sovereign Public and Private Cloud offerings provide architectures with built-in compliance for Indian customers.
• In-Country Processing: By late 2025, Microsoft 365 Copilot will process data entirely within India, one of only four global markets with this capability.
• Sector Support: This advances compliance and performance for government, BFSI, and healthcare organizations.

AI for 310 Million Informal Workers

Microsoft’s partnership with the Ministry of Labour and Employment brings advanced AI to e-Shram and the National Career Service, aiming to benefit over 310 million informal workers. Built on Azure, e-Shram already links workers to 18 welfare schemes and helped expand India’s social protection coverage from 24% in 2019 to 64% in 2025. New AI capabilities include: multilingual access, AI-powered job matching, predictive skill analytics, automated résumé tools, and personalized pathways to formal employment.

India: The New AI Battleground

Competition among global tech leaders is intensifying. Google recently announced a $15 billion AI and data-center investment, while Amazon and OpenAI are also expanding. India’s attraction lies in its vast internet-user base, fast-growing developer community, and digital-first governance. As PM Modi noted, the world is “optimistic about India” in AI.

Looking Ahead

Microsoft President Puneet Chandok emphasized that the new $17.5 billion commitment will turn India’s AI ambition into impact for every citizen. Union Minister Ashwini Vaishnaw highlighted that this investment showcases India’s rise as a trusted global tech partner, advancing from digital public infrastructure to AI public infrastructure.

As Satya Nadella shared with PM Modi, this investment will build the infrastructure, skills, and sovereign capabilities for an AI-first future. With 20 million Indians gaining AI skills, world-class infrastructure scaling nationwide, and AI reaching hundreds of millions of workers, India is poised to evolve from a digital powerhouse into a global AI leader—shaping an inclusive, innovation-driven future.

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