Microsoft has unveiled an ambitious plan to invest $3 billion in the development of cloud and artificial intelligence (AI) infrastructure in India over the next two years, with the objective of positioning the nation as an “AI-first” country. This announcement was made during the Microsoft AI Tour in Bengaluru by Microsoft Chairman and CEO Satya Nadella, who also outlined the company’s vision for fostering AI skills in the workforce.
According to a press release from Microsoft issued on 7 January, Nadella stated, “India is rapidly becoming a leader in AI innovation, unlocking new opportunity across the country.” He further emphasized that the investments in infrastructure and skills training reaffirm Microsoft’s commitment to making India an AI-first nation, ensuring that both individuals and organisations can benefit widely from these advancements.
The infrastructure investment will serve the needs of India’s burgeoning AI startups and research community. Microsoft currently operates three data centres in the country and is planning to expand its presence with the launch of a fourth data centre scheduled for 2026.
In addition to infrastructure, Microsoft has set a goal of training 10 million people in AI skills by 2030, building upon its previous initiative, ADVANTA(I)GE India, which successfully trained 2.4 million individuals in under a year since its launch in 2024. The training initiative is part of a broader commitment to enhancing the skills landscape within India’s workforce, preparing them for a future increasingly driven by AI technology.
To further bolster its efforts, Microsoft plans to establish an AI Innovation Network in the country. This initiative will see the Microsoft Research (MSR) Lab intensifying its efforts to enhance the AI ecosystem in India, facilitating new collaborations, and assisting startups in transitioning from research concepts to implementable business solutions. Puneet Chandok, president of Microsoft India and South Asia, commented, “In the last 12 months, Microsoft has been a copilot to making AI a reality in India, taking it from boardrooms to classrooms, commerce to communities, and finance to farmers.” He conveyed the company's belief in India’s potential and its dedication to providing the necessary resources and skills to excel on a global stage.
This announcement from Microsoft coincides with recent commitments made between the White House and the Indian Prime Minister’s Office aimed at strengthening the strategic technology partnership between the United States and India. These commitments include plans for collaborative investment in AI technologies, highlighting a growing emphasis on technological cooperation between the two nations.
The announcement also follows Amazon's reported intentions to invest approximately $12.7 billion in cloud infrastructure in India by the end of the decade, indicating a competitive landscape for cloud and AI development in the region.
These developments collectively indicate a significant trend in the intersection of technology and business practice in India, as global tech giants ramp up their investments and focus on AI to enhance business operations and societal impact.
Source: Noah Wire Services