Microsoft to invest US $3 billion in AI and cloud infrastructure in India

INDIA – Microsoft has announced plans to invest US $3 billion over the next two years to enhance cloud and artificial intelligence (AI) infrastructure in India, aiming to support the country’s transformation into an “AI-first nation.”

In addition to this substantial investment, the company intends to train 10 million individuals in AI skills by 2030 and launch an AI Innovation Network in the region.

These initiatives were unveiled by Microsoft Chairman and CEO Satya Nadella during the Microsoft AI Tour held in Bengaluru, as noted in a press release dated January 7.

Highlighting India’s growing prominence in AI innovation, Nadella emphasized the country’s potential to unlock vast opportunities.

He stated that the investments in infrastructure and skill development demonstrate Microsoft’s commitment to making India AI-centric while ensuring that individuals and organizations across the country benefit significantly from these advancements.

The investment in infrastructure is designed to support India’s expanding AI startup and research ecosystem.

Microsoft, which already operates three data centers in the country, is preparing to launch a fourth one by 2026.

This move is expected to cater to the surging demand for cutting-edge AI technologies and cloud solutions.

Microsoft’s training initiative aims to build on its ADVANTA(I)GE India program, which launched in 2024 and successfully trained 2.4 million individuals within a year.

By equipping 10 million more Indians with AI skills by 2030, the company seeks to ensure the workforce is well-prepared for emerging opportunities in the AI-driven economy.

The company is also enhancing its focus on fostering AI innovation through the launch of the AI Innovation Network.

This initiative will see Microsoft Research (MSR) Lab intensify efforts to develop India’s AI ecosystem, foster collaborations, and help startups transition from research to practical business solutions.

Reflecting on Microsoft’s contributions over the past year, Puneet Chandok, President of Microsoft India and South Asia, highlighted the company’s role in integrating AI across various sectors, from education and commerce to farming and finance.

He reaffirmed Microsoft’s belief in India’s potential and commitment to equipping the country with the tools and skills necessary to excel globally.

This announcement coincides with broader efforts to strengthen the strategic technology partnership between the United States and India.

On the previous day, the White House and the Indian Prime Minister’s Office revealed several initiatives to boost collaboration on AI, focusing on investments and safeguards for the technology.

Meanwhile, Microsoft is not the only tech giant investing heavily in India. In June, Amazon disclosed plans to invest approximately US $12.7 billion in cloud infrastructure in the country by the end of the decade.