Microsoft announced a $23 billion investment in artificial intelligence, with a significant portion allocated to India to strengthen its presence in the rapidly growing digital market. CEO Satya Nadella revealed that $17.5 billion would be invested in India, marking the company’s largest commitment in Asia and building upon a previous $3 billion pledge. This four-year initiative, set to commence in 2026, aims to establish Microsoft as the leading cloud-computing provider in India.
As India boasts over a billion internet users and a rich pool of tech talent, it has become a prime focus for US tech giants seeking to enhance their AI capabilities. Recognizing the potential of data centers in India, companies are investing heavily in AI infrastructure to capitalize on the country’s growing digital landscape, especially in the absence of robust chip-manufacturing capabilities.
In a move mirroring Google’s commitment to establish an AI data center in Andhra Pradesh with a $15 billion investment over five years, Microsoft’s substantial spending in India aims to bolster the country’s AI infrastructure, skills, and technological sovereignty. According to Nadella, these investments will pave the way for India’s AI-driven future, aligning with the country’s strategic goals.
During his visit to India for the company’s AI conferences across key cities, including New Delhi, Bengaluru, and Mumbai, Nadella emphasized the importance of these investments in advancing Microsoft’s AI initiatives and fostering technological innovation in the region. Despite ongoing trade tensions between New Delhi and Washington, Microsoft’s significant financial commitments underscore its confidence in India’s tech ecosystem and its long-term growth potential.
Furthermore, Microsoft announced its plans to invest over C$7.5 billion ($5.42 billion) in Canada over the next two years, culminating in a total investment of C$19 billion by 2027. This investment will enable the expansion of Microsoft’s Azure Local cloud offerings in Canada, with a strategic partnership formed with Canadian AI startup Cohere to integrate advanced AI models into its Azure platform.
The global tech industry’s heightened focus on AI is reflected in the collective investments exceeding $400 billion by major US cloud providers in data center infrastructure this year. Amid concerns of an AI bubble due to escalating investments and limited tangible productivity gains, Microsoft remains committed to expanding its AI capabilities globally, with specific attention on enhancing its presence in key markets like India and Canada.
Microsoft’s upcoming hyperscale region in Hyderabad, set to become the largest in India by mid-2026, will complement its existing data center footprint in Chennai, Hyderabad, and Pune. Additionally, the company has reinforced its commitment to upskilling 20 million Indians in AI by 2030. The anticipated surge in data center capacity in India, projected to triple to approximately 4.5 gigawatts by 2030, underscores the country’s growing significance in the global tech landscape.
With a substantial workforce in India and Canada, totaling more than 22,000 and 5,300 employees, respectively, Microsoft’s strategic investments in AI infrastructure underscore its commitment to driving innovation and digital transformation across key markets worldwide. Recent announcements of significant investments in Portugal and the UAE further underscore Microsoft’s global expansion efforts and its focus on leveraging AI to drive future growth and technological advancement.