Microsoft to invest US$17.5 billion in India to drive AI
02 January 2025: As technology becomes a catalyst for inclusive growth and economic transformation, India is emerging as a frontier AI nation. Against this backdrop of bold ambition and accelerating innovation, Microsoft has announced its largest investment in Asia – US$17.5 billion over four years (CY 2026 to 2029) – to advance India’s cloud and artificial intelligence (AI) infrastructure, skilling and ongoing operations. This investment builds on the US$3 billion investment announced earlier this year by Microsoft.
This announcement follows Microsoft Chairman and CEO Satya Nadella’s meeting with the Prime Minister of India, Narendra Modi, ahead of his India AI tour. In their meeting, both leaders discussed the country’s AI roadmap and growth priorities. Microsoft’s investment in India focuses on three pillars – scale, skills and sovereignty – aligned with the Narendra Modi’s vision of building a comprehensive ecosystem that drives AI innovation and access at a national scale.
Ashwini Vaishnaw, Union Minister of Electronics & Information Technology said, “As AI reshapes the digital economy, India remains committed to innovation anchored in trust and sovereignty. Microsoft’s landmark investment signals India’s rise as a reliable technology partner for the world. This partnership will set new benchmarks and drive the country’s leap from digital public infrastructure to AI public infrastructure.”
Dr. Mansukh Mandaviya, Minister of Labour & Employment and Youth Affairs & Sports said, “India has achieved a historic milestone in social protection, with coverage rising from 19 percent in 2015 to an impressive 64.3 percent in 2025, benefiting over 94 crore citizens. By embedding AI into platforms like eShram and the National Career Service, we are fortifying social security and moving closer to our goal of social protection to 100 crore citizens. We welcome Microsoft’s commitment to an AI-first future and to contribute towards enhancing social security for India. Furthermore, Microsoft’s initiative to encourage its wider ecosystem of partners and customers to participate as job providers or stakeholders on the NCS portal reflects its deep commitment to strengthening its relationship with India and driving inclusive growth.”
Puneet Chandok, President, Microsoft India and South Asia, said, “Microsoft has been part of India’s fabric for more than three decades. As the nation moves confidently into its AI-first future, we are proud to stand as a trusted partner in advancing the infrastructure, innovation and opportunity that can power a billion dreams. Building on the US$3 billion investment announced in January 2025, our new US$17.5 billion commitment and deep partnership across India’s technology ecosystem are focused on turning India’s AI ambition into impact for every citizen.”
Microsoft’s new investment will be used to continue to scale their cloud and AI infrastructure, skilling initiatives and ongoing operations across India. This includes there workforce of more than 22,000 employees across Bengaluru, Hyderabad, Pune, Gurugram, Noida and other cities – representing the diversity of Microsoft’s businesses.
