Microsoft investing $17.5 billion in India for AI and cloud infrastructure

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NEW DELHI (AP) — Microsoft on Tuesday announced its biggest-ever Asia investment, amounting to $17.5 billion, in India over the next four years to advance the country’s cloud and artificial intelligence infrastructure.

CEO Satya Nadella revealed this in an X post after meeting with Indian Prime Minister Narendra Modi in New Delhi.

Nadella said that Microsoft was committing the investments to help India build the “infrastructure, skills and sovereign capabilities” needed for its AI future.

The announcement underscores the growing global competition among major technology companies to expand in India, which has become one of the world’s fastest-growing digital markets.

In October, Google said it will invest $15 billion in India over the next five years to establish its first AI hub in the country. Located in the southern city of Visakhapatnam, the hub will be one of Google’s largest globally.

Nadella is in India on a three-day trip that includes discussions with policymakers, as well as participation in AI-focused events in the country's tech hub, Bengaluru, and financial capital, Mumbai.

India has set ambitious targets to become a leading global hub for AI and semiconductor manufacturing. The government has introduced financial incentives aimed at attracting global chipmakers and major technology companies to strengthen the country’s innovation ecosystem, boost jobs and reduce dependence on imported technologies.

“When it comes to AI, the world is optimistic about India,” Modi said on X after meeting with Nadella.

Microsoft’s latest India investment plan tops its earlier announcement this year of investing $3 billion in building cloud and AI infrastructure, as well as new data centers and skilling the workforce over the next two years.

The company, which has operated in India for more than three decades, employs more than 22,000 people in the country and has been expanding cloud and data center capacity to support advanced computing needs.

Microsoft said in a statement that it hopes to scale up its ongoing operations across India. It plans to have its largest hyperscale presence in the country with a new data center going live in mid-2026.