India – Microsoft has announced a US$3b investment in India over two years to enhance cloud and AI infrastructure, skilling, and establish new datacenters, driving AI innovation in the country.
During his visit to India, Microsoft Chairman and CEO Satya Nadella announced plans to expand the company’s cloud and AI infrastructure across its datacenter campuses. With three datacenter regions already operational and a fourth set to launch by 2026, the investment aims to build a scalable AI ecosystem to support India’s growing AI start-ups and research community.
The new datacenters will also feature zero-water cooling, reinforcing Microsoft’s commitment to sustainable AI growth. Additionally, long-term renewable energy contracts with Amplus and ReNew support the company’s goal of becoming carbon-negative by 2030.
Nadella said, “India is rapidly becoming a leader in AI innovation, unlocking new opportunities across the country. The investments in infrastructure and skilling we are announcing today reaffirm our commitment to making India AI-first and will help ensure people and organisations across the country benefit broadly.”
Puneet Chandok, president of Microsoft India and South Asia, further explained, “In the last 12 months Microsoft has been a copilot to making AI a reality in India, taking it from boardrooms to classrooms, commerce to communities, and finance to farmers. Today’s announcement strengthens our belief in India’s potential and our resolve to equip the country with the resources and future-ready skills needed to excel in the global marketplace. We will continue to use AI to unlock possibilities for the next few decades and ensure communities across the country have access to the compute they need to prosper in the AI era.”
Moreover, Microsoft plans to bolster India’s long-term competitiveness by equipping 10 million people with AI skills over the next five years through the second edition of its ADVANTA(I)GE India program. As part of Microsoft’s Global Skills for Social Impact charter, the program will deliver training in collaboration with government, nonprofit, and corporate partners, as well as local communities.
Shri Jayant Chaudhary, Minister of State (Independent Charge), Ministry of Skill Development and Entrepreneurship, said, “India’s vibrant youth and tech talent are key to shaping the future of AI. Through the ‘AI for India’ mission, we aim to empower citizens with cutting-edge AI skills, driving innovation, creating jobs, and bridging the digital divide. Collaborations with global leaders like Microsoft and similar companies are pivotal in this transformation. By equipping our workforce, especially women and youth, with advanced skills, we are building an AI-ready India, poised for digital leadership and sustainable economic growth.”
To strengthen its commitment to India’s AI ecosystem, Microsoft Research (MSR) Lab also launched an AI Innovation Network. This initiative will drive new collaborations, particularly with digital-native companies, to accelerate the translation of AI research into practical business solutions.
In line with this, Microsoft signed an AI MoU with SaaSBoomi, an Indian B2B startup community. The partnership aims to fuel the growth of India’s AI and SaaS ecosystem, positioning the country as a global product powerhouse and contributing to its trillion-dollar economy.
By combining SaaSBoomi’s network with Microsoft’s technology, the collaboration seeks to support over 5,000 startups and 10,000 entrepreneurs, upskill 150,000 employees, and drive regional development in more than 20 tier II cities. Over the next five years, the initiative aims to create 200,000 new jobs, attract $1.5b in venture capital, and nurture 50 unicorns and soonicorns, advancing innovation, sustainability, and tech infrastructure across India.
Microsoft underscores that its investments in accelerating AI innovation are crucial to supporting Prime Minister Narendra Modi’s vision of transforming India into a developed nation (Viksit Bharat) by 2047.
