Microsoft opens Hyderabad cloud region to boost India’s AI, cloud infra

Microsoft has launched its India South Central cloud region in Hyderabad, expanding to four regions across the country. The facility, built with three Availability Zones, strengthens Microsoft’s AI and cloud infrastructure amid surging enterprise demand.

New Delhi: Microsoft on Thursday announced the general availability of its India South Central cloud region in Hyderabad, strengthening its cloud and artificial intelligence infrastructure in the country.

The new facility expands Microsoft’s presence to four cloud regions in India and comes amid rising demand for AI and cloud services from enterprises.

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With the addition of the Hyderabad region, Microsoft now operates four cloud regions in India, namely Central India in Pune, South India in Chennai, West India in Mumbai and India South Central in Hyderabad.

The company also runs two datacenters in partnership with Jio, giving it what it describes as the largest hyperscale cloud presence in the country.

The new datacenter region comprises three Availability Zones and has been built with a resilient design aligned with India’s regulatory and seismic-zone requirements.

Microsoft said the facility is designed to support mission-critical workloads at scale while providing customers with greater choice to run eligible Microsoft Cloud services and workloads from within the country.

The launch comes at a time when demand for cloud and AI infrastructure is rising rapidly across industries.

Microsoft said Azure has registered strong double-digit growth in India over the past two years, and the company expects momentum to strengthen further with the Hyderabad region now operational.

Several large enterprises, including Adani Group, Bajaj Finserv, HDFC Bank and PB Pay, are among the early-access customers already using the new cloud region.

Microsoft said the Hyderabad facility will play a critical role in helping organizations modernize critical systems, develop new digital services and deploy AI solutions while meeting requirements related to security, compliance and governance.

The expansion builds on Microsoft’s significant investments in India. The company had announced a $3 billion investment in January 2025, followed by a $17.5 billion investment commitment in December 2025, aimed at enhancing cloud and AI infrastructure across the country.

Commenting on the launch, Puneet Chandok, President of Microsoft India and South Asia, said trusted digital infrastructure close to where data resides and decisions are made is essential for organizations looking to translate AI experimentation into long-term business value.