Microsoft to Make investments $17.5 Billion to Scale India’s AI and Cloud, Joins Google and OpenAI’s Latest Push

[ad_1] Microsoft, on Tuesday, introduced an funding of $17.5 billion (roughly Rs. 1.57 lakh crore) in India to develop synthetic intelligence (AI) and cloud infrastructure, help authorities tasks round skilling, and to broaden its ongoing tasks. The announcement was made following a gathering between the Redmond-based tech large's CEO Satya Nadella and Prime Minister Narendra Modi. The corporate claimed it to be its largest funding in Asia, and highlighted that the capability constructing may assist the nation's inclusive progress and financial transformation. Apparently, Google and OpenAI have additionally introduced related investments in India this yr.

Microsoft Declares Main AI and Cloud Funding in India In a newsroom put up, the tech large introduced a serious dedication of $17.5 billion (roughly Rs. 1.57 lakh crore) to India over the subsequent 4 years. Microsoft stated the brand new funds will probably be directed towards three core pillars of scale, expertise, and sovereignty.

On the infrastructure facet, the corporate introduced that the continued undertaking to growing the India South Central cloud area in Hyderabad will probably be operational in mid-2026. Calling it its largest hyperscale area within the nation, the corporate stated will probably be as giant as “two Eden Gardens stadiums mixed.” The funding fund can even go in direction of the Home windows maker's three current operational information centre areas in Chennai, Hyderabad and Pune.

Microsoft additionally introduced the combination of its AI capabilities in two digital public platforms of the Ministry of Labour and Employment, e-Shram and the Nationwide Profession Service (NCS). Each platforms will now supply options resembling multilingual help, AI-powered job matching, predictive analytics for talent and demand developments, automated resumé creation, and extra.

On the skilling entrance, the tech large stated it's going to work with authorities, trade, and digital public platforms to equip 20 million Indians with important AI expertise by 2030. The corporate additionally shared that its ADVANTA(I)GE India initiative has already skilled 5.6 million folks since January 2025, with greater than 1,25,000 people incomes a job or entrepreneurial alternatives from the coaching.

The corporate additionally launched Sovereign Public Cloud and Sovereign Non-public Cloud for Indian enterprises. These information storage and administration choices guarantee delicate info stays throughout the nation's border. The system is break up into two foremost choices: the Sovereign Public Cloud, which makes use of Microsoft's current information centres in India however provides particular compliance safeguards and governance guidelines; and the Sovereign Non-public Cloud, a extra remoted resolution that enables clients to run a completely useful Microsoft cloud setting on their very own premises, with the pliability to remain related to international providers or function fully offline for optimum safety.

Beforehand, the tech large had introduced that Microsoft 365 Copilot will supply in-country information processing in India bythe finish of 2025, making the nation one of many 4 international markets to obtain this degree of knowledge sovereignty.

Apparently, this funding comes at a time when India's data-centre and AI infrastructure sector is experiencing fast progress, and the know-how itself is being closely adopted throughout totally different sectors, making India a profitable marketplace for AI gamers. In October, Google made a dedication of $15 billion (1.3 lakh crore) to construct an AI information centre in Visakhapatnam, Andhra Pradesh, in partnership with Airtel. The corporate can be partnering with Reliance to ascertain the Jamnagar Cloud area.

In September, a report claimed that OpenAI can be in superior discussions to construct an AI information centre in India with at the least 1GW capability. The AI large has additionally launched an India-exclusive ChatGPT plan dubbed ChatGPT Go, which has been made out there free of charge for the subsequent 12 months.Notably, in February 2026, India will host its inaugural World AI Summit, the place all of those corporations can even be invited alongside dignitaries from numerous international locations.