Microsoft To Invest $17.5 Billion To Expand India's AI And Cloud Ecosystem

(MENAFN- KNN India) New Delhi, Dec 10 (KNN) India is set to take a major leap in its artificial intelligence journey as global tech major Microsoft has announced a USD 17.5 billion investment over four years (CY 2026–2029) to expand cloud and AI infrastructure, skilling initiatives and operations across the country.

The announcement builds on the USD 3 billion investment unveiled by the company earlier this year, which is expected to be fully deployed by the end of CY2026.

Focus on Scale, Skills and Sovereignty

Microsoft said its India strategy is anchored on three pillars, scale, skills and sovereignty, aligned with the government's vision of building AI public infrastructure at national scale.

Union Minister, Electronics and Information Technology Ashwini Vaishnaw said the investment signals India's emergence as a trusted global technology partner and will accelerate the transition from digital public infrastructure to AI public infrastructure.

Expanding AI and Cloud Infrastructure

Microsoft will channel a major share of its investment into hyperscale cloud and AI infrastructure, developing the India South Central region in Hyderabad by mid-2026 and expanding data centres in Chennai, Hyderabad and Pune to improve resilience, low latency and nationwide access.

AI at Population Scale

Microsoft also announced deeper integration of AI capabilities into the Ministry of Labour and Employment's digital platforms, e-Shram and the National Career Service (NCS), to extend AI benefits to over 310 million informal workers.

Using Azure OpenAI Service, the platforms will offer multilingual access, AI-enabled job matching, predictive analytics, automated résumé creation and personalised employment pathways.

Building an AI-Ready Workforce

Microsoft aims to skill 20 million Indians in AI by 2030 and has already trained 5.6 million people under ADVANTA(I)GE India since January 2025, enabling jobs and entrepreneurship.

Strengthening Digital Sovereignty

Microsoft launched Sovereign Public and Private Cloud offerings for India to meet data governance needs and said Microsoft 365 Copilot will enable in-country data processing by end-2025, enhancing compliance for government, Banking, Financial Services, and Insurance (BFSI) and healthcare.

Impact on MSMEs

This can benefit MSMEs through affordable cloud and AI access, AI skilling and sovereign cloud offerings, helping them secure talent, improve productivity and meet regulatory requirements.

(KNN Bureau)

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