India Secures Microsoft’s Biggest Asia Investment With $17.5 Billion AI And Cloud Infrastructure Push

Infrastructure

Swarajya Staff

Dec 10, 2025, 08:03 AM | Updated 08:03 AM IST

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Microsoft CEO Satya Nadella met Prime Minister Narendra Modi on Wednesday (9 December) and committed the company will invest $17.5 billion in India.

This will be Microsoft’s largest investment in Asia and is aimed at supporting the country’s expanding Artificial Intelligence ecosystem.

"Thank you PM Narendra Modiji for an inspiring conversation on India's AI opportunity. To support the country's ambitions, Microsoft is committing US$ 17.5 billion – our largest investment ever in Asia – to help build the infrastructure, skills, and sovereign capabilities needed for India's AI-first future," Nadella said after meeting PM Modi.

In response, PM Modi said, responded, "When it comes to AI, the world is optimistic about India!"

"Had a very productive discussion with Satya Nadella. Happy to see India being the place where Microsoft will make its largest-ever investment in Asia. The youth of India will harness this opportunity to innovate and leverage the power of AI for a better planet," he added.

Microsoft later said in a statement that the new $17.5 billion investment builds on an earlier $3 billion commitment for cloud and AI centres in Bengaluru.

Together, these projects will give the company its largest hyperscale footprint in the country.

The latest investment by Microsoft will advance India’s cloud and artificial intelligence (AI) infrastructure, skilling and ongoing operations

"India stands at a pivotal moment in its AI journey… one defined by impact at scale, determined to lead. As technology becomes a catalyst for inclusive growth and economic transformation, the country is emerging as a frontier AI nation. Against this backdrop of bold ambition and accelerating innovation, today we are announcing our largest investment in Asia — US$17.5 billion over four years (CY 2026 to 2029) — to advance the country’s cloud and artificial intelligence (AI) infrastructure, skilling and ongoing operations. This investment builds on the US$3 billion investment announced earlier this year, which we are on track to spend by the end of CY2026," the company statement said.

Microsoft’s total investment, approaching $20 billion, highlights India’s importance as a major market for global technology companies working to expand digital infrastructure.

Earlier in October, Google CEO Sundar Pichai informed Prime Minister Modi about the company’s plan to set up an AI hub in Visakhapatnam. This is Google’s largest investment in India.

Google has joined hands with the Adani Group to develop a major data centre and AI hub in Visakhapatnam. The company said it will invest $15 billion in the next five years.

Amazon has also committed several billion dollars toward data centre development in India.

In October, the Prime Minister also met Qualcomm CEO Cristiano R Amon to discuss India’s progress in AI, innovation, and skill development.

In a recent address in Delhi, the Prime Minister discussed India’s role in creating a global approach to AI.

He emphasised ethical and human-centric development of the technology and said work is underway on a national AI policy.

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