Microsoft CEO Satya Nadella announced the company’s intention to invest $3 billion in cloud and AI infrastructure in India on Tuesday. “I am thrilled to share that we are undertaking the largest expansion in India by investing an additional $3 billion to enhance our Azure capacity,” Nadella stated during the Microsoft AI Tour held at BIEC, Bengaluru. “I had the opportunity to meet Prime Minister Modi yesterday. It was inspiring to hear his insights. His vision for advancing the AI mission is impressive, particularly with the initiatives he has, the India stack, the entrepreneurial spirit in the nation, and the demographics on both the consumer and business sides. This is why we are enthusiastic about providing essential computing capabilities for the upcoming generation of AI,” he further elaborated.
Nadella highlighted that India stands as an AI powerhouse with over 30,594 contributors to GenAI projects. Additionally, the American tech firm has launched the second edition of the ADVANTA(I)GE India programme, aiming to equip 10 million individuals with AI skills over the next five years. The inaugural edition of this initiative, launched in 2024, aimed to train two million people in AI skills by 2025. “India is swiftly establishing itself as a leader in AI innovation, creating new opportunities throughout the nation. Today’s investment in infrastructure and skill development underscores our commitment to making India AI-first, ensuring that individuals and organisations nationwide reap extensive benefits,” Nadella explained.
According to the CEO, in the future, nations and businesses worldwide will adopt a new standard for measuring infrastructure based on tokens per dollar per watt. “Infrastructure must be prioritised, and we are innovating at every layer. A decade from now, we will discuss the relationship between GDP growth in any community, nation, industry, or even at the corporate level and how effectively they can manage this equation,” he noted.
Currently, Microsoft operates three data centre regions in India, with plans for a fourth to become operational by 2026. “AI cannot function in isolation — it necessitates a complete computing framework. We operate in over 60 regions and more than 300 data centres worldwide. In India, we are particularly optimistic about the regions we have developed — Central India, South India, and West India. We have also built considerable capacity in partnership with Jio, which supports our regional expansion,” he added.
In a separate announcement, Microsoft and SaaSBoomi have signed a Memorandum of Understanding (MoU) to boost India’s AI and SaaS ecosystem. This collaboration aims to influence over 5,000 startups and support around 10,000 entrepreneurs. Earlier this week, Microsoft unveiled plans to invest approximately $80 billion in FY25 to develop data centres aimed at training AI models and deploying AI and cloud-based applications globally.
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