Microsoft Pledges $3 Bn for India鈥檚 Digital Infrastructure Expansion
09 Jan 2025
2 Min Read
CW Team
Satya Nadella, Chairman and CEO, Microsoft, revealed that the company intends to invest $3 billion in developing data centres and other digital infrastructure in India. This initiative represents Microsoft鈥檚 most significant market commitment in Asia to date.
With Microsoft striving to establish itself as a global leader in artificial intelligence (AI), Nadella outlined plans to allocate the funds over the next two years to build new data centers and upgrade existing facilities. Additionally, he stated that the company aims to train 10 million individuals over the next five years to accelerate AI innovation in India. Nadella, a graduate of Mangalore University in Karnataka, emphasized the strategic importance of this initiative for India's AI ecosystem.
This investment aligns with a broader trend of substantial commitments by US cloud providers to Asia's digital infrastructure. For instance, Microsoft announced a $2.9 billion investment in Japan in April of the previous year, while Amazon and Google also unveiled significant initiatives across the region in 2023.
Nadella highlighted India鈥檚 growing prominence in AI innovation, describing it as a key driver of new opportunities nationwide. He affirmed Microsoft鈥檚 dedication to positioning India as an AI-first country, noting that these investments in infrastructure and skills aim to ensure widespread benefits for people and organizations across the nation.
Microsoft has not disclosed detailed plans for its India infrastructure development but stated its intent to create a scalable AI computing ecosystem to meet the country's rapidly increasing demand. This aligns with the company鈥檚 broader strategy, as it has invested over $13 billion in OpenAI, a leading AI startup. Recently, Brad Smith, Microsoft鈥檚 vice chair and president, announced an $80 billion allocation for the fiscal year to develop AI-capable data centers globally.
In India, Microsoft currently operates data centre regions in Pune, Chennai, and Mumbai. The company expanded its Pune footprint in September 2024 by acquiring 16 acre of land for $62 million. A fourth data centre in Hyderabad is under development and is expected to become operational by 2026.
This commitment comes amid analysts鈥� projections of significant growth in India鈥檚 data centre capacity. In November, JLL estimated a 66 per cent increase in the country's capacity by 2026, driven by rising AI demand and 5G rollout. Srihari Srinivasan, director and data centre services lead for Savills India, commented that India鈥檚 vast customer base, along with Microsoft鈥檚 substantial presence in the region, makes it a strategic investment destination.
Satya Nadella, Chairman and CEO, Microsoft, revealed that the company intends to invest $3 billion in developing data centres and other digital infrastructure in India. This initiative represents Microsoft鈥檚 most significant market commitment in Asia to date.
With Microsoft striving to establish itself as a global leader in artificial intelligence (AI), Nadella outlined plans to allocate the funds over the next two years to build new data centers and upgrade existing facilities. Additionally, he stated that the company aims to train 10 million individuals over the next five years to accelerate AI innovation in India. Nadella, a graduate of Mangalore University in Karnataka, emphasized the strategic importance of this initiative for India's AI ecosystem.
This investment aligns with a broader trend of substantial commitments by US cloud providers to Asia's digital infrastructure. For instance, Microsoft announced a $2.9 billion investment in Japan in April of the previous year, while Amazon and Google also unveiled significant initiatives across the region in 2023.
Nadella highlighted India鈥檚 growing prominence in AI innovation, describing it as a key driver of new opportunities nationwide. He affirmed Microsoft鈥檚 dedication to positioning India as an AI-first country, noting that these investments in infrastructure and skills aim to ensure widespread benefits for people and organizations across the nation.
Microsoft has not disclosed detailed plans for its India infrastructure development but stated its intent to create a scalable AI computing ecosystem to meet the country's rapidly increasing demand. This aligns with the company鈥檚 broader strategy, as it has invested over $13 billion in OpenAI, a leading AI startup. Recently, Brad Smith, Microsoft鈥檚 vice chair and president, announced an $80 billion allocation for the fiscal year to develop AI-capable data centers globally.
In India, Microsoft currently operates data centre regions in Pune, Chennai, and Mumbai. The company expanded its Pune footprint in September 2024 by acquiring 16 acre of land for $62 million. A fourth data centre in Hyderabad is under development and is expected to become operational by 2026.
This commitment comes amid analysts鈥� projections of significant growth in India鈥檚 data centre capacity. In November, JLL estimated a 66 per cent increase in the country's capacity by 2026, driven by rising AI demand and 5G rollout. Srihari Srinivasan, director and data centre services lead for Savills India, commented that India鈥檚 vast customer base, along with Microsoft鈥檚 substantial presence in the region, makes it a strategic investment destination.
Next Story
Lack of Bidders Stalls VOC Port鈥檚 Rs 70.56 Bn Harbour Project Again
The VOC Port Authority鈥檚 Rs 70.56 billion outer harbour project has once again faced a setback, with the latest tender process cancelled due to the absence of qualified bidders. This marks the second failed attempt to secure participation for the mega infrastructure initiative.The tender has reportedly been withdrawn from the active list of bids, and the authority is now expected to re-evaluate and possibly restructure the project to enhance its appeal to potential developers.The port authority had initially floated the Request for Proposal (RFP) in December 2024, following the cancellation ..
Next Story
Sea Lord Containers Opens Cryogenic LPG Terminal in Mangalore
Sea Lord Containers (SCL), a wholly-owned subsidiary of Aegis Logistics, has commissioned a new cryogenic Liquified Petroleum Gas (LPG) terminal in Mangalore. The facility, which became operational on 12 June 2025, offers a static storage capacity of 82,000 metric tons (MT), significantly strengthening the region鈥檚 LPG logistics infrastructure.The terminal was developed by SCL on behalf of Aegis Vopak Terminals, an associate company of Aegis Logistics. The asset is expected to be transferred to Aegis Vopak Terminals Limited at a later date, with formal updates to be shared separately with st..
Next Story
Cochin Port and Oil India Partner for Offshore Exploration Support
The Cochin Port Authority (CoPA) has signed a Memorandum of Understanding (MoU) with Oil India (OIL) to establish a shore base facility supporting offshore oil exploration in the Kerala-Konkan Basin. The agreement was formalised at a ceremony held at CoPA, Willingdon Island, on 12 June 2025, in the presence of senior officials from both organisations.Under the partnership, Cochin Port will provide critical logistics infrastructure for OIL鈥檚 offshore drilling operations, expected to begin later in 2025. The planned shore base will include a dedicated warehouse, dry bulk handling plant, and an..
