Microsoft announces $3 billion investment in India to strengthen AI and cloud infrastructure

Microsoft CEO Satya Nadella announced a $3 billion investment in India.

Microsoft on Tuesday (January 7, 2025) announced a $3 billion investment in India, marking its largest-ever expansion in the country.

The announcement, made by CEO Satya Nadella at Microsoft AI Tour event in Bengaluru, underscores tech giant’s commitment to bolstering India’s AI infrastructure and driving innovation in one of the fastest-growing digital markets in the world.

The investment will be focused on building new data centres across India, enhancing Microsoft’s computing capabilities and enabling cutting-edge AI solutions. The move comes at a time when several tech companies are experimenting with AI tools and agentic frameworks to streamline workflows. The company’s recent partnership with local enterprises, like Jio, further highlights the importance of the Indian market in the global race for AI dominance

“India’s unique combination of entrepreneurial energy, robust infrastructure, and demographic strength creates an unmatched environment for innovation,” the CEO Satya Nadella said at the event.

The company’s initiative aligns with the country’s rapid adoption of AI tools and platforms, empowering industries across healthcare, contract management, and knowledge work.

In his key note talk, Mr. Nadella highlighted India as an AI powerhouse, noting that, by 2028, the country’s developers will be the largest community on GitHub. And as of now, project contributors from India are second on the platform after the U.S.

During the event, Mr. Nadella showcased Microsoft’s AI platform, Copilot, which integrates seamlessly into workflows, offering transformative capabilities to businesses. Copilot’s applications, from automating tasks to facilitating complex decision-making processes, are expected to revolutionize productivity and efficiency in Indian enterprises.