Global technology giant Microsoft announced on Tuesday plans to invest $17.5 billion. The investment will help build India’s artificial intelligence infrastructure. CEO Satya Nadella called it “our largest investment ever in Asia”.
Several global corporations have announced large investments this year in the South Asian nation. The country is projected to have more than 900 million internet users by year’s end.
“To support the country’s ambitions, Microsoft is committing US$17.5B (billion) — our largest investment ever in Asia. This investment will help build the infrastructure, skills, and sovereign capabilities needed for India’s AI first future. These developments are crucial,” Nadella said in a post on X.
Nadella made the announcement on social media. He met Prime Minister Narendra Modi in New Delhi. He thanked the leader for “an inspiring conversation on India’s AI opportunity”.
In a statement, Microsoft said the investment would be spread over four years.
“Together, Microsoft and India are poised to set new benchmarks. They will drive the country’s leap from digital public infrastructure to AI public infrastructure in the coming decade,” the statement said.
The tech giant outlined its investment plan’s key priorities. One main focus is “building secure, sovereign-ready hyperscale infrastructure.” This is to enable AI adoption in India.
The significant progress being made at the India South Central cloud region is at the heart of this effort. This region, based in Hyderabad, is set to go live in mid-2026, Microsoft added.
The planned cloud region is twice the size of the iconic Eden Gardens stadium. This stadium is in India’s eastern city, Kolkata. It has a capacity of over 65,000 people.
Microsoft said the latest announcement “builds on” a previous investment pledge. Nadella had made this pledge earlier this year. He committed $3 billion for AI and cloud infrastructure in India over the next two years.
Modi expressed his happiness. He was glad that the tech giant had chosen India for its largest investment in Asia.
The prime minister said in a post on X that the youth of India will harness this opportunity to innovate. They will use the power of AI for a better planet.
“When it comes to AI, the world is optimistic about India,” Modi added.
Tech giants
Global technology giants are aggressively courting more users in India, the world’s most populous country and fifth-largest economy.
Artificial intelligence has been a special area of focus. In October, US startup Anthropic unveiled plans to open an office in India. Its chief executive Dario Amodei has also met Modi.
The same month, Google said it will invest $15 billion in India over the next five years, as it announced a giant data centre and artificial intelligence base in the country.
OpenAI has said it will open an India office. Its chief, Sam Altman, noted that ChatGPT usage in the country had grown fourfold over the past year.
AI firm Perplexity also announced a major partnership in July with Indian telecom giant Airtel, offering the company’s 360 million customers a free one-year Perplexity Pro subscription.
But India’s bid to become a global technology and artificial intelligence hub is colliding with increasingly tightening digital regulations.
According to recent media reports, authorities are drafting plans. They want to ensure that manufacturers enable satellite location tracking in smartphones. This tracking cannot be turned off by users. This is a proposal that rights groups have raised the alarm over.
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