Microsoft has announced its largest-ever investment in Asia, pledging $17.5 billion for India’s cloud and artificial intelligence infrastructure over the next four years.
The announcement came after CEO Satya Nadella met with Indian Prime Minister Narendra Modi in New Delhi, marking a major step in the country’s drive to become a global leader in advanced technologies.
Nadella shared details of the plan in a post on X, describing the investment as central to building the “infrastructure, skills, and sovereign capabilities” India needs to compete in an AI-driven world, DW.COM reports.
The Microsoft chief is currently on a three-day visit to India, with engagements in New Delhi, Bengaluru and Mumbai focused on AI development and digital innovation.
“Together, Microsoft and India are poised to set new benchmarks and drive the country’s leap from digital public infrastructure to AI public infrastructure in the coming decade,” the company said in a statement.
India, one of the world’s fastest-growing digital markets, has set ambitious targets to boost semiconductor production and AI capacity.
The government has introduced financial incentives to attract global tech giants and reduce reliance on imported technologies — a strategy that aligns closely with Microsoft’s expanded commitment.
Modi, commenting on the meeting, said global confidence in India’s AI potential has never been stronger.
A Competitive Race for India’s Digital Future
Microsoft’s investment surpasses its earlier pledge of $3 billion over two years for new data centers and workforce development. The company, which employs more than 22,000 people in India, continues to scale its cloud and data capabilities to keep pace with rising demand for advanced computing.
One of its top priorities is the construction of “secure, sovereign-ready hyperscale infrastructure” to accelerate India’s AI adoption. This includes a massive new cloud region — twice the size of Kolkata’s iconic Eden Gardens stadium — and the forthcoming India South Central cloud region in Hyderabad, set to go live in mid-2026.
Other tech giants are also ramping up their India presence. Google recently committed $15 billion over five years, including plans for a major new AI hub in Visakhapatnam.
Parallel Commitment to Canada
Microsoft also confirmed more than $5.4 billion in investment for Canada over the next two years. The company plans to expand cloud capacity there, with new facilities expected to come online in the second half of 2026.
Together, the India and Canada commitments mark one of the largest global investment waves in Microsoft’s history — underscoring the company’s strategic focus on strengthening cloud dominance and supporting the worldwide acceleration of artificial intelligence.
