Microsoft Eyes Further Data Centre Expansion in India Post-2026, Bolstering AI Talent Pool

Microsoft is planning to continue its investment in AI-ready data centre infrastructure in India beyond 2026, alongside ongoing recruitment of AI engineers to develop advanced solutions. This commitment signals a long-term strategy to solidify its presence in the rapidly growing Indian market and support the nation's ambition to be an AI-first economy.

Puneet Chandok, President of Microsoft India and South Asia, stated that the company's Hyderabad data centre, a significant regional hub, is slated to commence operations by June 2026 as part of their existing $3 billion investment plan for this year and the next. This facility will augment Microsoft's existing data centre network in Mumbai, Pune, and Chennai, in addition to the two Jio-Azure regions in Maharashtra and Gujarat established with Reliance Industries.

Chandok emphasized that all of Microsoft's data centres are AI-ready, reflecting the company's strategic investment focus. He further clarified that these investments are not isolated events but rather a continuous, structural commitment, with deeper investments planned in the future. This announcement comes ahead of Microsoft's Chairman and CEO Satya Nadella's scheduled visit to India from December 10-12, where key announcements regarding AI infrastructure are expected.

Microsoft's continued investment in India aligns with the predicted surge in data centre investments within the country, spurred by growing AI demand and the rollout of 5G networks. JLL anticipates a 66% increase in India's data centre capacity by 2026. Microsoft's strategy aims to enhance cloud service performance, address data sovereignty concerns, and stimulate local tech ecosystems.

Recognizing the increasing importance of AI skills, Microsoft is also dedicated to expanding India's AI talent pool. The company already employs 22,000 AI engineers in India and intends to continue hiring. Furthermore, Microsoft is committed to training 10 million people in India with AI skills by 2030 through the ADVANTA(I)GE India program. This initiative includes partnerships with the government and various organizations to provide AI training to students, educators, developers, government officials, and women entrepreneurs. Microsoft is also establishing AI productivity labs in 20 National Skill Training Institutes (NSTIs) and NIELIT centers across 10 states to offer AI learning courses.

These initiatives are designed to bridge the AI skills gap, particularly in smaller cities and rural areas, and promote inclusive growth by increasing AI adoption nationwide. Microsoft's commitment extends beyond infrastructure and talent development. The company is also focused on sustainability, incorporating zero-water cooling technologies in its new data centres and securing long-term renewable energy contracts to achieve its goal of becoming carbon-negative by 2030.

Microsoft's ongoing investments in data centres and AI talent in India demonstrate its confidence in the country's long-term digital potential and its commitment to playing a significant role in powering India's next phase of innovation and growth.