New Delhi, India – Microsoft CEO Satya Nadella delivered a highly anticipated keynote address in New Delhi today, outlining his vision for how India can take a leading role in the next age of Artificial Intelligence. The address comes amidst significant investment from the tech giant, solidifying India's position as a key global hub for AI innovation, talent, and infrastructure.
Nadella's visit to India underscores the country's growing importance in the global technology landscape. He met with Prime Minister Narendra Modi prior to the keynote, discussing India's AI roadmap and growth priorities. Nadella expressed his gratitude to the Prime Minister via social media, stating that Microsoft is committing $17.5 billion to support India's ambitions by building the necessary infrastructure, skills, and sovereign capabilities for an AI-first future.
This $17.5 billion investment, planned between 2026 and 2029, is Microsoft's largest ever in Asia and builds upon the $3 billion commitment made earlier in January 2025. The investment will focus on three key areas: expanding infrastructure, developing AI skills, and supporting sovereign cloud services.
A significant portion of the investment will go towards expanding India's AI and cloud infrastructure. Microsoft is on track to establish the largest hyperscale presence in the country, with a new data center region in Hyderabad scheduled to launch by mid-2026. This site will include three availability zones and is designed to meet the rapidly growing demand for AI compute, storage, and enterprise cloud solutions in India. Microsoft also plans to expand its existing data center regions in Chennai, Hyderabad, and Pune.
Recognizing the importance of a skilled workforce, Microsoft is also doubling its commitment to training individuals in AI. The company aims to equip 20 million Indians with essential AI skills by 2030, working with the government, industry, and digital public platforms to ensure equitable access to opportunities. Through its ADVANTA(I)GE India program, Microsoft has already trained 5.6 million people since January 2025, surpassing its initial goal of training 10 million by 2030. The program has also facilitated job placements and entrepreneurial ventures for over 125,000 participants.
Furthermore, Microsoft is introducing Sovereign Public Cloud and Sovereign Private Cloud offerings for Indian customers. These solutions will provide Indian organizations with greater control over their data, compliance, and operational sovereignty, particularly for sensitive workloads in sectors such as government, defense, finance, and critical infrastructure. These offerings address data residency, regulatory compliance, governance, and operational isolation. Microsoft plans to launch Microsoft 365 Copilot with in-country data processing by the end of 2025.
Microsoft is also working to integrate AI into government platforms. AI capabilities will be added to the e-Shram and National Career Service systems, operated by the Ministry of Labour and Employment, which serve over 310 million informal workers. These enhancements will include multilingual support, AI-guided job matching, predictive analytics, and automated resume tools.
Puneet Chandok, President of Microsoft India and South Asia, emphasized Microsoft's commitment to India, stating that the company has been part of India's fabric for over three decades. He noted that Microsoft is a trusted partner in advancing the infrastructure, innovation, and opportunities needed to power a billion dreams as India moves confidently into its AI-first future.
This latest investment intensifies the competition among tech giants in India's rapidly growing digital market. Google recently announced a $15 billion investment to build an AI hub and data center infrastructure in India.
Microsoft's commitment aims to help India transition from digital public infrastructure to AI public infrastructure. By focusing on infrastructure, skills, and sovereign capabilities, Microsoft hopes to contribute to a future that is both equitable and uniquely Indian in its scale and impact. Nadella's keynote and Microsoft's investment signal a strong belief in India's potential to lead the next age of AI, driving innovation and inclusive growth.
