The Microsoft India AI investment of ₹1.57 lakh crore marks one of the largest technology commitments in the nation’s history. This investment is set to accelerate India’s AI growth, strengthen digital infrastructure, and expand skilling opportunities for millions. It also reinforces India’s position as a global hub for responsible and scalable AI innovation.
Microsoft Announces ₹1.57 Lakh Crore Commitment
Microsoft CEO Satya Nadella met Prime Minister Narendra Modi during his visit to India. During the meeting, Microsoft announced an investment of $17.5 billion (₹1.57 lakh crore) for India’s AI and cloud expansion. The move highlights India’s growing importance in the global AI landscape.
Expanding India’s AI and Cloud Infrastructure
The Microsoft India AI investment includes the creation of a new India South Central data center region in Hyderabad. It is expected to go live by mid-2026.
Microsoft will also expand cloud regions in Chennai, Hyderabad, and Pune. As a result, enterprises and startups will get faster, low-latency services.
The company currently employs more than 22,000 people across several Indian Cities.
Strengthening AI Skills Across India
Microsoft plans to train 20 million Indians by 2030, doubling its previous target. The company has already skilled 5.6 million people since January 2025.
Moreover, Microsoft and the Directorate General of Training (DGT) have launched a one-year AI Programming Assistant micro-degree. The course is offered across 33 National Skill Training Institutes. At least half of the seats are reserved for women. Early results show strong placements at NSTI Bengaluru and Indore.
Why This Investment Matters for India
The government sees the Microsoft India AI investment as a major step toward building trusted and sovereign AI systems. It supports India’s shift from digital public infrastructure to AI public infrastructure.
Furthermore, Microsoft says the transformation will rest on three pillars:
– Scaled hyperscale infrastructure
– Sovereign-ready AI solutions
– Nationwide AI skilling programs
A Turning Point for India’s Tech Future
The ₹1.57 lakh crore investment positions India as a global AI leader. It strengthens infrastructure, expands skills, and boosts collaboration between industry and government. As AI adoption accelerates, this investment will help millions join the future workforce and drive innovation across sectors.
