Big Boost to India’s AI and Cloud Infrastructure

Global tech giant Microsoft is gearing up to significantly boost India’s artificial intelligence and cloud infrastructure by setting up its largest data center in the country by 2026. According to reports, the facility will be established in Hyderabad, a rapidly growing technology hub. Microsoft India and South Asia President Puneet Chandok has officially confirmed the development, stating that the upcoming center will be one of the company’s most strategic and largest investments in India. He highlighted the growing demand for Azure cloud services and the rapid adoption of the company’s Copilot 365 AI assistant, priced at $30 per month, across the Indian market.

India continues to be one of the fastest-growing digital markets globally, driven by a massive internet user base and a strong pool of skilled tech talent. Microsoft is strengthening its AI ecosystem in the country amid increasing competition from global players like Google and Amazon. The company has announced a massive $17.5 billion investment in India, considered one of its largest in Asia, in addition to an earlier $3 billion commitment made in 2025. A significant portion of this investment will be directed toward expanding data center infrastructure, particularly the Hyderabad facility. Chandok also stated that the project is progressing at a rapid pace and is expected to be completed ahead of schedule, though specific capacity details remain undisclosed.