Microsoft Announces Landmark $17.5 Billion AI Infrastructure Investment in India
December 9, 2025
In a major move underscoring India's strategic importance in the global artificial intelligence race, Microsoft has unveiled plans to invest $17.5 billion in AI infrastructure within the country over the next four years. This commitment, announced on December 9, 2025, represents the tech giant's single largest investment in Asia to date and signals a deepening focus on building sovereign AI capabilities in one of the world's fastest-growing digital economies.
The investment builds upon a $3 billion pledge Microsoft made earlier in 2025 for AI and cloud capacity in India. The new $17.5 billion initiative, set to commence in 2026, is aimed at developing the foundational infrastructure, skills, and sovereign capabilities required for what the company terms "India’s AI-first future." In a post on social media platform X, Microsoft CEO Satya Nadella stated, "Thank you, PM Narendra Modi, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing $17.5bn - our largest investment ever in Asia - to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI-first future."
While specific project details were not fully disclosed, the investment aligns with Microsoft's ongoing regional expansion. The company recently confirmed the launch of its new "India South Central" Azure cloud region in Hyderabad, scheduled for 2026, adding to its existing operational regions in Pune, Chennai, and Mumbai. This massive financial commitment places Microsoft at the forefront of a hyperscale investment wave in India. In recent months, Google confirmed a $15 billion data center project in Andhra Pradesh, while Amazon Web Services announced an $8.3 billion cloud infrastructure investment in the state of Maharashtra.
Concurrently, Microsoft revealed a separate, complementary investment of CA$7.5 billion (approximately US$5.42 billion) in Canada over the next two years. This funding is part of a broader CA$19 billion commitment for the 2023-2027 period and is intended to bring new cloud capacity online in the second half of 2026, supporting the company's growing operations in Toronto and Quebec City.
The scale of Microsoft's Indian investment highlights the country's critical role as both a massive future market for AI services and a key hub for global digital infrastructure. It accelerates the competition among cloud providers to secure capacity and influence in a region with immense growth potential, while also supporting the Indian government's push for technological self-reliance and digital transformation across its economy and public services.
Source: datacenterdynamics
Microsoft Commits $17.5 Billion to AI Infrastructure in India, Its Largest Asian Investment
