Microsoft committed $17.5 billion over the next four years to advance India's cloud and artificial intelligence infrastructure. This represents the company's largest investment in Asia. CEO Satya Nadella announced the commitment in New Delhi following a meeting with Indian Prime Minister Narendra Modi.
The funding aims to bolster India's AI capabilities by building necessary infrastructure, promoting skills development, and ensuring sovereign capabilities. This new commitment significantly surpasses Microsoft's previous plan to invest $3 billion in the country. The expansion highlights escalating competition among major tech giants for dominance in India's rapidly expanding digital market.
As part of the initiative, Microsoft plans to establish its largest hyperscale data center in India. The facility is expected to be operational by mid-2026.
The news was accompanied by a separate C$19 billion investment to expand Microsoft's AI and cloud infrastructure footprint in Canada. Initial reports have not yet included detailed analysis of the market's reaction or any immediate impact on Microsoft's stock price.