Microsoft commits US$17.5 billion, its largest investment in Asia, to accelerate AI diffusion and expand cloud infrastructure in India from 2026–2029.
Skilling target doubled to 20 million people by 2030, with Microsoft AI being integrated into e-Shram and NCS to benefit 310 million informal workers.
Launch of Sovereign Public and Private Cloud to help Indian organizations build secure, compliant digital environments for AI innovation.
Microsoft Announces Record US$17.5 Billion Investment For India’s AI Revolution
Microsoft’s historic US$17.5 billion bet on India signals a new era of AI-led growth, workforce empowerment, and sovereign digital infrastructure.
Summary
In its strongest commitment yet to India’s digital future, Microsoft has announced a US$17.5 billion investment over the next four years (2026–2029) to accelerate AI adoption at population scale. The announcement came after Microsoft Chairman and CEO Satya Nadella’s meeting with Prime Minister Narendra Modi, where both leaders discussed India’s role as one of the world’s most dynamic digital economies.
This investment marks Microsoft’s largest-ever in Asia, and builds on the US$3 billion commitment made in January 2025. With this, India formally becomes one of Microsoft’s most strategic global hubs for AI infrastructure, skilling, and innovation.
A significant share of the investment will flow into expanding India’s AI and cloud capacities. Microsoft is on track to establish the largest hyperscale presence in the country, with its new datacenter expected to go live by mid-2026. This expanded footprint will power India’s rapidly growing demand for AI compute, storage, and enterprise cloud solutions.
The investment also strengthens Microsoft’s long-term operational commitments in India, including engineering, R&D, and ecosystem partnerships.
Recognizing the urgent need for an AI-ready workforce, Microsoft announced it is doubling its skilling commitment, aiming to train 20 million people by 2030. This initiative will span students, professionals, startups, and grassroots communities—equipping India with one of the world’s largest AI-skilled talent pools.
In a major boost for social impact, Microsoft AI will now be integrated into the e-Shram and National Career Service (NCS) platforms. This move is expected to benefit over 310 million informal sector workers by helping them access personalized skilling pathways, job opportunities, and government support services more effectively.
To support India’s rising need for secure digital environments, Microsoft unveiled new Sovereign Public Cloud and Sovereign Private Cloud offerings. These will help Indian organizations—particularly in government, defense, finance, and critical infrastructure—build secure, compliant, and fully sovereign environments for sensitive workloads in the AI era.
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The announcement reinforces India’s position as a central player in the global AI economy. Nadella’s visit, accompanied by keynote addresses in New Delhi, Bengaluru, and Mumbai (Dec 10–12), is expected to outline Microsoft’s deeper roadmap for India across cloud, AI, research, and social transformation.
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