Microsoft has announced a US$3 billion investment over the next two years to accelerate India's AI and cloud capabilities. The initiative is aimed at enhancing the company's cloud and AI infrastructure, launching new data centers, and expanding skilling programs across the country. This development comes as part of Microsoft's broader strategy to strengthen India's position in the global AI ecosystem, supporting both its start-up community and research sector.

Microsoft's Chairman and CEO Satya Nadella announced the plans to expand its cloud and AI infrastructure across its data center campuses in India. It plans to develop three operational data center regions in India with the fourth coming in 2026. This investment will help the company to build a scalable AI ecosystem that supports the rapidly growing AI start-up sector and research community in India.

Microsoft’s investment also focuses on sustainability. The company will integrate zero-water cooling systems into its new data centers, underscoring its commitment to environmentally friendly practices. Additionally, long-term renewable energy contracts with companies such as Amplus and ReNew will further aid Microsoft in its goal of becoming carbon-negative by 2030.

"India is rapidly becoming a leader in AI innovation, unlocking new opportunities across the country. 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", Nadella said in his statement.

According to President of Microsoft India and South Asia Puneet Chandok, the company has become a copilot in the process of making AI a reality across India for the past 12 months, bringing AI from boardrooms to classrooms and from commerce and communities to finance and farmers. Today's news further solidifies the confidence with which it operates in the world's most precious market – its own home soil. We will continue to unlock possibilities in AI over the next few decades and ensure communities across the country have access to the compute they need to succeed in an AI world.

The skilling of India's workforce is yet another significant thrust area of the company. For the second edition of its ADVANTA(I)GE India program, Microsoft commits to training 10 million people in AI-related skills over the next five years. This shall be delivered jointly with government agencies, nonprofit organizations, corporate partners, and local communities on the necessary skill set that could bolster the digital workforce of this country.

Shri Jayant Chaudhary, Minister of State (Independent Charge) for the Ministry of Skill Development and Entrepreneurship, added: "The young and the technical talent from India are very key to how India will create future AI. This 'AI for India' mission enables citizens with high-end AI skills, fuel innovation, generates employment, and further bridges the digital divide. Engagements with leaders in the likes of Microsoft and more are crucial for the change that needs to take place". Building an AI-ready India by empowering our workforce- mainly the female and the youth-for leadership positions in a sustainable growth pathway through economic and digital advancements.

As part of its efforts to strengthen India's AI ecosystem, Microsoft Research (MSR) Lab launched the AI Innovation Network. This initiative is aimed at fostering collaborations with digital-native companies to accelerate the application of AI research in practical business solutions. The network will focus on promoting the development of AI-driven technologies that can be implemented across various industries, contributing to India's growth as an AI powerhouse.

Microsoft also partnered with SaaSBoomi, a leading Indian B2B startup community. The partnership aims to fuel India's AI and SaaS ecosystem as a global product powerhouse. This will support more than 5,000 startups and 10,000 entrepreneurs, upskill 150,000 employees, and drive regional development in more than 20 tier II cities. It aims to create 200,000 new jobs, attract $1.5 billion in venture capital, and nurture 50 unicorns and soonicorns over the next five years, furthering innovation, sustainability, and robust tech infrastructure across India.

By strengthening its investments in AI, Microsoft reaffirms its alignment with Prime Minister Narendra Modi’s vision of transforming India into a developed nation (Viksit Bharat) by 2047. This ambitious initiative will not only boost India’s global competitiveness but also ensure that Indian citizens and businesses are well-positioned to thrive in the rapidly evolving digital economy.