Microsoft Announces $17.5 Billion Investment to Power India's AI Push

• Microsoft commits $17.5B to boost India’s AI infrastructure
• Largest Microsoft investment in Asia, to be deployed over 2026-2029
• Project focuses on skills, sovereign cloud, and population-scale AI adoption

Microsoft CEO Satya Nadella has announced a massive $17.5 billion investment in India, marking the company’s biggest commitment in Asia. Nadella shared the update on X after meeting Prime Minister Narendra Modi, saying the investment will help accelerate India’s AI-first future by strengthening infrastructure, skills, and sovereign digital capabilities.

According to Microsoft, the funds will be deployed over the next four years (2026-2029) and will support population-scale AI adoption across industries. This comes on top of the $3 billion the company had already pledged in January 2025, most of which has been deployed.

The scale of Microsoft’s commitment surpasses the $15 billion jointly announced last month by Google, the Adani Group, and Airtel for the Vizag AI hub. It also follows Reliance Industries’ $15 billion bet on AI through its newly formed venture REIL, developed in partnership with Meta.

PM Modi welcomed Microsoft’s announcement, saying India’s young talent will drive innovation and use AI for global good. Electronics and IT minister Ashwini Vaishnaw added that the partnership reinforces India’s position as a trusted technology partner and will help the country leap from digital public infrastructure to AI public infrastructure.

Also Read: Tata Electronics to Build Intel's AI Chips and Laptops in Gujarat and Assam

Microsoft also revealed plans to launch sovereign public and private cloud services for Indian customers. These offerings aim to strengthen compliance, governance, and secure workload deployment across Azure environments, with public cloud services operating from Microsoft’s India regions and private cloud services running on Azure Local.

Nadella is on a three-day India visit, meeting policymakers and participating in AI-focused events in Bengaluru and Mumbai. Microsoft executives said India is one of the world’s fastest-growing AI markets, with adoption now moving from pilot projects to full-scale enterprise deployments.

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