Microsoft has announced $23 billion in new artificial intelligence investments, with $17.5 billion earmarked for India, marking the company’s largest investment in Asia. CEO Satya Nadella said the four-year plan, beginning in 2026, will build the largest cloud-computing presence in India and support infrastructure, skills, and sovereign capabilities needed for the country’s AI future.
Nadella stated, “This investment will help build the infrastructure, skills, and sovereign capabilities needed for India’s AI-first future.” India, with around a billion internet users and a strong tech talent pool, has become a focal point for U.S. technology firms, which are investing heavily in AI data centers. Microsoft will establish a new hyperscale region in Hyderabad, expand its existing Chennai, Hyderabad, and Pune facilities, and double its earlier commitment to equip 20 million Indians with AI skills by 2030.
The company is also increasing AI investments in Canada, Portugal, and the United Arab Emirates, with plans to expand cloud capacity and offer advanced AI models through local partnerships. Total data center capacity in India is projected to more than triple to about 4.5 gigawatts by 2030, supporting applications such as ChatGPT, Copilot, and Gemini.