Microsoft to Invest $3 Billion in AI and Cloud Infrastructure in India
Microsoft to Invest $3 Billion in AI and Cloud Infrastructure in India
Bengaluru: Microsoft CEO Satya Nadella announced a $3 billion investment in India to enhance the country’s cloud and artificial intelligence (AI) infrastructure over the next two years. The announcement was made during the Bengaluru leg of the Microsoft AI Tour on January 7.
The investment includes the establishment of new data centers, adding to Microsoft’s existing three data center regions in India. The fourth center is expected to be operational by 2026. Nadella emphasized Microsoft’s commitment to making India an AI-first nation, driving innovation and opportunities across the country.
In addition to infrastructure, Microsoft aims to train 10 million people in AI skills over the next five years under the second phase of its ADVANTA(I)GE India program. This initiative is part of the company’s Global Skills for Social Impact charter and will be executed in collaboration with governments, nonprofits, corporates, and community organizations. Notably, Microsoft has already trained 2.4 million individuals, surpassing its 2024 target, with 65% of participants being women and 74% from tier II and tier III cities.
Furthering its AI agenda, Microsoft signed a memorandum of understanding (MoU) with SaaSBoomi, a B2B startup community in India. This collaboration aims to upskill over 150,000 startup employees, attract $1.5 billion in venture capital for the AI and SaaS ecosystem, and generate 200,000 new jobs in the next five years. The MoU also targets the emergence of 50 unicorns and soonicorns in the Indian market.
Additionally, Microsoft Research Lab India is launching an AI Innovation Network to bridge research and business solutions. Collaborations with companies are already underway, focusing on math reasoning, optimizing Indic language models, and advancing reinforcement learning.
Puneet Chandok, President of Microsoft India and South Asia, reiterated the company’s dedication to equipping India with future-ready skills, stating, “We are committed to using AI to unlock possibilities and ensure communities across the country prosper in the AI era.”
This investment underscores Microsoft’s vision to position India as a global leader in AI and digital transformation.
