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Microsoft to invest $17.5bn in India for AI capacity expansion

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Global technology giant Microsoft on Tuesday unveiled plans to invest $17.5 billion to expand India’s artificial intelligence infrastructure.

This was disclosed by Microsoft’s CEO, Satya Nadella, describing it as “our largest investment ever in Asia.”

The announcement adds to a wave of major commitments from global companies this year, as India, expected to surpass 900 million internet users by the end of 2025, continues to attract significant tech and digital infrastructure investment.

“To support the country’s ambitions, Microsoft is committing US$17.5B (billion) — our largest investment ever in Asia — to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI first future,” Nadella said in a post on X.

Nadella announced the investment on social media after meeting Prime Minister Narendra Modi in New Delhi, thanking him for “an inspiring conversation on India’s AI opportunity.”

Microsoft added in a statement that the $17.5 billion commitment will be implemented over a four-year period.

“Together, Microsoft and India are poised to set new benchmarks and drive the country’s leap from digital public infrastructure to AI public infrastructure in the coming decade,” the statement added.

The company said a central focus of the investment is “building secure, sovereign-ready hyperscale infrastructure to enable AI adoption in India.”

The planned cloud region will span an area twice the size of Kolkata’s iconic Eden Gardens stadium, which seats more than 65,000 people.

Microsoft added that this new commitment builds on Nadella’s earlier pledge of $3 billion for AI and cloud infrastructure in India over the next two years.