Microsoft to invest $3 billion in AI and cloud infrastructure in India

Investment aims to accelerate AI innovation in the country, which is pivotal for achieving Prime Minister Narendra Modi's vision of becoming a developed nation (Viksit Bharat) by 2047

Bengaluru: As India embarks on its artificial intelligence (AI) journey, Microsoft Chairman and CEO, Satya Nadella, on Tuesday announced $3 billion investment in the country for cloud and AI infrastructure over the next two years.

This investment aims to accelerate AI innovation in the country, which is pivotal for achieving Prime Minister Narendra Modi’s vision of becoming a developed nation (Viksit Bharat) by 2047.

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The tech giant also announced to train and skill 10 million people in AI by 2030. The company has already empowered 2.4 million Indians, including civil servants, college students and people with disabilities, with AI skills.

India is rapidly becoming a leader in AI innovation, unlocking new opportunity across the country. The investments in infrastructure and skilling we are announcing today reaffirm our commitment to making India AI-first and will help ensure people and organisations across the country benefit broadly, said Nadella.

On Monday, PM Modi met Nadella, saying he was glad to know about the tech giant’s ambitious expansion and investment plans in the country.

At an event here, Microsoft Research Lab launched an AI Innovation Network, a groundbreaking initiative designed to accelerate the transition from research to real, usable business solutions.

Furthermore, Microsoft and SaaSBoomi have joined hands to propel India’s AI and SaaS ecosystem towards a trillion-dollar economy, aiming to impact over 5,000 startups and 10,000 entrepreneurs, creating over 200,000 new job opportunities.

In the last 12 months, Microsoft has been a copilot to making AI a reality in India, taking it from boardrooms to classrooms, commerce to communities, and finance to farmers. Today’s announcement strengthens our belief in India’s potential and our resolve to equip the country with the resources and future-ready skills needed to excel in the global marketplace, said Puneet Chandok, president, Microsoft India and South Asia.

The company will expand its cloud and AI infrastructure across data centre campuses in the country. Microsoft already has three data centre regions in the market, and the fourth ready to go live in 2026.

This investment aims to develop a scalable AI computing ecosystem to meet the growing demands of India’s rapidly expanding AI start-ups and research community, said the company.

Moreover, the company announced its next milestone, to equip 10 million more Indians with essential AI skills by 2030.

Jayant Chaudhary, Minister of State for Skill Development and Entrepreneurship, said India’s vibrant youth and tech talent are key to shaping the future of AI. Through the AI for India mission, we aim to empower citizens with cutting-edge AI skills, driving innovation, creating jobs, and bridging the digital divide. Collaborations with global leaders like Microsoft and similar companies are pivotal in this transformation, the Minister noted.