Microsoft Unveils Record $17.5B India AI Expansion Plan

Microsoft on Tuesday announced a massive $17.5 billion investment in India, marking the tech giant’s biggest-ever commitment in Asia. The announcement came shortly after CEO Satya Nadella met Prime Minister Narendra Modi in New Delhi during his ongoing three-day India visit.

Nadella shared the news on X, saying the company is stepping up to help India build the “infrastructure, skills and sovereign capabilities” required for its next phase of AI growth. The scale of this investment signals how central India has become in the global race for artificial intelligence and cloud dominance.

The fresh commitment will be rolled out over the next four years and will focus on expanding cloud capacity, strengthening AI data centers, and supporting India’s push toward building resilient digital infrastructure. Microsoft has been operating in India for more than 30 years and currently employs over 22,000 people, many of whom work on cloud and advanced computing projects. The company said it plans to significantly scale its presence, with a new hyperscale data center scheduled to go live by mid-2026.

This move also intensifies competition among global tech giants eyeing India’s rapidly expanding digital market. Just a few months earlier, Google announced a $15 billion plan to establish one of its biggest AI hubs in Visakhapatnam. The government’s recent incentives for chipmakers and technology firms have further accelerated interest, as India positions itself as a future leader in AI and semiconductor manufacturing.

Nadella’s India trip includes meetings with policymakers and participation in AI-focused events across Bengaluru and Mumbai, reflecting the growing alignment between global tech ambitions and India’s digital acceleration goals.

As interest surges and investments climb, India’s journey toward becoming a major global AI hub is gaining unprecedented momentum.