Microsoft announced a major investment in India’s cloud and artificial intelligence infrastructure, marking a significant expansion of the tech giant’s presence in one of the world’s fastest-growing digital economies. The investment, which is to the tune of $3 billion, was announced by Microsoft’s chief executive Satya Nadella during the company’s AI Tour in Bangalore. The move highlights India’s emerging role as a crucial battleground for global technology companies seeking to capture the next wave of AI growth.
The next 12 months will be pivotal, Nadella said, emphasizing the company’s vision to integrate AI into everyday workflows through its Copilot technology. The system, which embeds AI capabilities into familiar Microsoft tools, represents the company’s bet on making artificial intelligence accessible to India’s vast workforce.
This investment aims to accelerate AI innovation in India, which is pivotal for achieving Prime Minister Narendra Modi’s vision of becoming a developed nation (Viksit Bharat) by 2047, the company said. Microsoft will also support the country’s long-term competitiveness by training 10 million people over the next five years with AI skills, as part of the second edition of its ADVANTA(I)GE India program.
Satya Nadella said, “India is rapidly becoming a leader in AI innovation, unlocking new opportunity 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 organizations across the country benefit broadly.”
Puneet Chandok, president, Microsoft India and South Asia added, “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.”
A global AI hub
The announcement comes at a crucial moment for India’s tech sector. Just last year, the government approved an ambitious $1.25 billion national AI initiative, aiming to position the country as a global leader in artificial intelligence. Industry experts project India’s homegrown generative AI market could reach $17 billion by 2030.
Nadella’s investment pledge followed a high-stakes meeting with Prime Minister Narendra Modi on Monday, where the two leaders discussed India’s technological transformation. The meeting highlighted the growing alignment between Microsoft’s expansion plans and India’s digital ambitions.
Nadella emphasized Microsoft’s global infrastructure of over 300 data centers that will support the increasing demand for AI processing power.
The Microsoft chief’s visit is part of a broader pattern of engagement between global tech leaders and Indian government officials. In recent weeks, PM Modi has held similar discussions with former Infosys CEO Vishal Sikka and Perplexity co-founder Aravind Srinivas, signaling India’s growing influence in the global tech landscape.
For Microsoft, the new investment represents a doubling down on the country’s potential. The move comes as global tech companies increasingly view India, with its large pool of engineering talent and growing digital economy, as essential to their future growth strategies.