Microsoft has announced a massive $17.5 billion investment in India, marking the company’s largest financial commitment in Asia. The technology giant revealed the plan on Tuesday, which builds upon a previous $3 billion pledge made earlier in the year.
The substantial funding will be distributed over a four-year period spanning 2026 through 2029. Microsoft’s objective is to help transform India’s digital infrastructure into an AI-powered ecosystem, supporting the nation’s progression toward what the company describes as “AI public infrastructure” over the next decade.
Microsoft’s chief executive Satya Nadella traveled to India this month as part of a comprehensive “India AI” tour across multiple cities. During his visit on Tuesday, he held discussions with Prime Minister Narendra Modi in New Delhi. Nadella is scheduled to deliver a keynote presentation on Wednesday titled “Leading in the New Age of AI.”
The investment framework focuses on three core pillars. The first emphasis is on scale, which involves constructing hyperscale infrastructure to facilitate widespread AI implementation throughout India. Microsoft reported substantial advancement at its India South Central cloud facility in Hyderabad, which is projected to become operational by mid-2026. Additionally, the company plans to continue expanding its three currently functioning data center locations in Chennai, Hyderabad, and Pune.
The second pillar addresses skills development. Microsoft is expanding its previous January commitment by doubling its goal to provide AI skills training to 20 million Indians by 2030. Since January, the company has already delivered training to 5.6 million individuals. These educational programs have resulted in more than 125,000 participants securing employment or entrepreneurial opportunities.
The third focus area is sovereignty. Microsoft is launching Sovereign Public Cloud and Sovereign Private Cloud solutions specifically designed for Indian customers. These offerings aim to provide Indian organizations with enhanced control over their data, compliance requirements, and operational independence. From a security
perspective, these services will address data residency requirements, regulatory compliance needs, governance standards, and operational isolation.
Microsoft also revealed that 310 million informal workers throughout India will gain access to enhanced AI capabilities through integration with two significant digital public platforms managed by the Ministry of Labour and Employment: e-Shram and the National Career Service.
The company maintains a workforce of 22,000 employees distributed across various Indian cities including Bengaluru, Hyderabad, Pune, Gurugram, Noida, and other locations. These employees represent diverse business divisions within the organization.
On the same day, Microsoft President Brad Smith disclosed additional commitments to Canada, announcing an extra $5.4 billion investment over the next two years to expand digital and AI infrastructure in that country. Smith emphasized similar objectives for Canada as those outlined for India, including enhanced skills training initiatives and digital sovereignty measures.
The strategic investments demonstrate Microsoft’s commitment to expanding its global AI infrastructure and capabilities, with particular emphasis on major international markets. The company aims to democratize AI access while respecting local data governance requirements and building technical capacity through comprehensive training programs. These multi-billion dollar commitments position Microsoft as a major partner in national digital transformation initiatives across both Asian and North American markets.