Microsoft to Invest $3 Billion in Cloud and AI Infrastructure in India

Microsoft Chairman and CEO Satya Nadella has announced a $3 billion investment to expand its cloud and artificial intelligence infrastructure in India over the next two years. Made during the Microsoft AI Tour, Nadella’s announcement underlines the company’s effort to make India an “AI-first” nation and advance its digital economy.

“India is rapidly becoming a leader in AI innovation, unlocking new opportunity across the country,” Nadella said. “The investments in infrastructure and skilling we are announcing today reaffirm our commitment to making India AI-first, and will help ensure people and organizations across the country benefit broadly.”

This AI investment aims to scale Microsoft’s cloud capacity and support India’s growing AI-driven startups and research initiatives. The tech major plans to establish new data centers, with a fourth region set to go live in 2026, improving infrastructure for the country’s expanding digital economy.

Teaching AI Skills to 10 Million Indian Citizens

The AI investment announcement comes alongside a pledge to train 10 million people in AI skills by 2030 through Microsoft’s ADVANTA(I)GE India initiative. The program trained 2.4 million individuals in 2024, with a focus on inclusivity—65 percent of participants were women, and a significant portion came from tier two and tier three cities. Puneet Chandok, President of Microsoft India and South Asia, highlighted the company’s mission to bring AI “from boardrooms to classrooms, commerce to communities, and finance to farmers.”

Microsoft also introduced the AI Innovation Network, led by its Microsoft Research (MSR) Lab, to promote collaboration between researchers, startups, and businesses. The network aims to accelerate the transition of AI research into real-world solutions, with noteworthy partnerships like Physics Wallah focusing on personalized education technologies.

In addition, a new partnership with SaaSBoomi will support 5,000 startups and 10,000 entrepreneurs, particularly in tier two cities. Over the next five years, this collaboration aims to create 200,000 jobs, attract $1.5 billion in venture capital funding, and contribute to India’s trillion-dollar SaaS economy.

Microsoft’s skilling efforts align with India’s mission to bridge the digital divide and create job opportunities.

“Collaborations with global leaders like Microsoft and similar companies are pivotal in this transformation,” said India’s Minister of Skill Development and Entrepreneurship Shri Jayant Chaudhary, praising the collaboration. “By equipping our workforce, especially women and youth, with advanced skills, we are building an AI-ready India, poised for digital leadership and sustainable economic growth.”

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