Microsoft Set to Undertake its Largest Cloud Capacity Expansion in India

India, with its population exceeding 1.4 billion and widespread access to affordable internet, has become a focal point for tech investments. High-profile executives, including Nvidia's Jensen Huang and Meta’s chief AI scientist Yann LeCun, have visited the country recently, reflecting its increasing role in the global tech ecosystem. Amidst this phenomenon, Microsoft CEO Satya Nadella announced a $3 billion investment to expand the company's artificial intelligence (AI) and Azure cloud-computing capacity in India. Speaking at a conference in Bengaluru, Nadella described this as Microsoft’s "single largest expansion" in the country, underscoring India’s strategic importance as a growth market for U.S. technology firms. 

In addition to infrastructure investments, Microsoft aims to train 10 million people in AI by 2030. This follows Nadella’s earlier commitment, announced last year, to provide 2 million Indians with AI skilling opportunities by 2025, focusing particularly on smaller cities and rural areas.  Nadella also met with Indian Prime Minister Narendra Modi to discuss innovation, AI, and Microsoft’s ambitious plans for India. 

This investment aligns with Microsoft’s global strategy of bolstering AI infrastructure and expanding its data center network. The company recently revealed plans to allocate $80 billion in fiscal 2025, with more than half of the funds directed to U.S. data center development to train AI models and deploy cloud-based applications. 

By significantly increasing its presence in India, Microsoft aims to position itself as a leader in AI and cloud services while supporting the nation’s digital transformation initiatives.