- Microsoft announces $17.5 billion India investment to expand AI infrastructure.
- The company targets skilling 20 million Indians and boosting sovereign cloud capabilities.
- AI to enhance national platforms such as e-Shram and Career Service.
Microsoft has unveiled a landmark $17.5 billion investment in India spanning 2026 to 2029, aimed at strengthening the nation's cloud and artificial intelligence infrastructure, skilling programs, and operational capabilities. This substantial pledge follows a recent dialogue between Microsoft Chairman and CEO Satya Nadella and Indian Prime Minister Narendra Modi, who explored strategies for India's AI evolution and economic priorities. It extends the company's earlier $3 billion dedication from early 2025, which Microsoft anticipates fully deploying by late 2026.
The initiative rests on three foundational elements: scaling infrastructure, enhancing skills, and ensuring data sovereignty. To scale operations, Microsoft plans to introduce the India South Central cloud region in Hyderabad by mid-2026, its most expansive in the country, featuring three availability zones, while upgrading facilities in Chennai, Hyderabad, and Pune for superior performance and reliability.
On the skills front, the company is ambitiously raising its target to equip 20 million Indians with AI expertise by 2030. The ADVANTA(I)GE India program has already exceeded expectations, training 5.6 million individuals since January 2025, surpassing the original 10 million goal and generating more than 125,000 employment or startup opportunities.
Prioritizing sovereignty, Microsoft will roll out Sovereign Public Cloud and Sovereign Private Cloud offerings to safeguard data localization and regulatory adherence. By year's end, Microsoft 365 Copilot will handle data processing domestically, positioning India among the top four global markets for this feature.
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Further amplifying impact, Microsoft is weaving AI into vital national systems. For e-Shram, it will link over 310 million informal workers to 18 welfare programs via multilingual interfaces, job matching, and predictive tools. The National Career Service will gain AI-driven resume automation and tailored career guidance, powered by Azure OpenAI Service.
With over 22,000 employees across Bengaluru, Hyderabad, and Pune, Microsoft is fueling innovations such as Copilot Studio and Azure AI Search. This move underscores India's shift from digital to AI-driven public infrastructure, fostering inclusive growth, security, and self-reliance.