Business EconomyPosted at: Dec 9 2025 7:25PM


Microsoft to invest USD 17.5 bln in India to drive AI; Satya Nadella meets PM Modi

New Delhi, Dec 9 (UNI) Microsoft is set to invest $17.5 billion in India for AI, the announcement came after its chairman and CEO Satya Nadella met Prime Minister Narendra Modi ahead of its India AI tour.
In their meeting, both leaders discussed the country’s AI roadmap and growth priorities, the company said in a statement.
“We are announcing our largest investment in Asia — US$17.5 billion over four years (CY 2026 to 2029) — to advance the country’s cloud and Artificial Intelligence (AI) infrastructure, skilling and ongoing operations. This investment builds on the US$3 billion investment announced earlier this year, which we are on track to spend by the end of CY2026,” the statement read.
Microsoft’s investment in India focuses on three pillars — scale, skills and sovereignty — aligned with the Prime Minister’s vision of building a comprehensive ecosystem that drives AI innovation and access at a national scale, it said.
Company’s CEO Satya Nadella in a post on X said, "Thank you, PM Narendra Modi, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing $17.5 billion — our largest investment ever in Asia — to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI first future."
Ashwini Vaishnaw, Minister of Electronics & Information Technology, said, “As AI reshapes the digital economy, India remains committed to innovation anchored in trust and sovereignty. Microsoft’s landmark investment signals India’s rise as a reliable technology partner for the world. This partnership will set new benchmarks and drive the country’s leap from digital public infrastructure to AI public infrastructure.”
One of the key priorities of the 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, the statement read.
“This will be our largest hyperscale region in India, comprising three availability zones — roughly equivalent in size to two Eden Gardens stadiums combined.”
“We will also continue to expand our three existing operational data center regions in Chennai, Hyderabad and Pune,” it added.
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