Microsoft announced an investment of $17.5 billion in India, marking the company’s largest-ever investment in Asia. The funding will be deployed over the next four years to strengthen cloud and artificial intelligence infrastructure, expand skilling initiatives and support ongoing operations across the country.
The latest commitment significantly expands Microsoft’s investment footprint in India, coming months after the company announced a $3 billion investment earlier this year. The announcement followed a meeting between Microsoft Chairman and CEO Satya Nadella and Prime Minister Narendra Modi, during which the two leaders discussed India’s artificial intelligence roadmap and growth priorities.
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“When it comes to AI, the world is optimistic about India! Had a very productive discussion with Mr. Satya Nadella. Happy to see India being the place where Microsoft will make its largest-ever investment in Asia. The youth of India will harness this opportunity to innovate and leverage the power of AI for a better planet,” Prime Minister Narendra Modi said.
Microsoft said the investment is aligned with India’s ambition to build a national-scale AI ecosystem. “Thank you, PM Narendra Modi ji, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing US$17.5B, our largest investment ever in Asia, to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI first future,” Satya Nadella, Chairman and CEO, Microsoft, said.
According to the company, the investment is anchored around three focus areas, scale, skills and sovereignty, aimed at expanding hyperscale cloud and AI infrastructure, developing a skilled workforce and enabling trusted, sovereign-ready digital capabilities. The move is also expected to support India’s transition from digital public infrastructure to AI public infrastructure over the coming decade.
Ashwini Vaishnaw, Union Minister of Electronics and Information Technology said the investment underscores India’s growing role in the global technology ecosystem. “As AI reshapes the digital economy, India remains committed to innovation anchored in trust and sovereignty. Microsoft’s landmark investment signals India’s rise as a reliable technology partner for the world. This partnership will set new benchmarks and drive the country’s leap from digital public infrastructure to AI public infrastructure,” he said.
Puneet Chandok, President for India and South Asia, Microsoft said the expanded investment builds on the company’s long-standing presence in the country. “Microsoft has been part of India’s fabric for more than three decades. As the nation moves confidently into its AI-first future, we are proud to stand as a trusted partner in advancing the infrastructure, innovation and opportunity that can power a billion dreams,” he said. Chandok added that the company’s combined investments are focused on turning India’s AI ambitions into tangible outcomes for citizens, with emphasis on hyperscale infrastructure, sovereign-ready solutions and large-scale skilling programmes.
Microsoft said the new funding will be used to further scale cloud and AI infrastructure, support skilling initiatives and strengthen operations across India. The company currently employs more than 22,000 people across cities including Bengaluru, Hyderabad, Pune, Gurugram and Noida. These teams work across the company’s product lifecycle, from model development and engineering to product innovation, while also operating hyperscale datacentres and providing sales and support services to customers nationwide.
