Microsoft to invest $3 bn in AI, cloud in India: Satya Nadella

Tech giant Microsoft plans to invest $3 billion in India’s cloud and artificial intelligence (AI) infrastructure as well as skilling initiatives over the next two years, chief executive Satya Nadella announced on Tuesday.

This move includes the setting up of new data centers as well as imparting AI skills to 10 million Indians by 2030. Speaking at the announcement, Nadella highlighted India's emerging leadership in AI innovation, stating, "India is rapidly becoming a leader in AI innovation, unlocking new opportunities across the country. These investments reaffirm our commitment to making India AI-first and ensuring that people and organisations benefit broadly."

Advancing AI Infrastructure and Skills

Microsoft’s investment will include the expansion of its cloud and AI infrastructure in India. The company already operates three data center regions in the country, with a fourth expected to go live in 2026. This expansion will support India's growing AI ecosystem, catering to start-ups, researchers, and businesses that rely on scalable computing power.

The cornerstone of this initiative is the second phase of Microsoft's ADVANTA(I)GE India program. Having already trained 2.4 million Indians in AI skills under its first phase, Microsoft now aims to train an additional 10 million individuals by 2030. This training initiative focuses on equipping professionals, students, and underserved communities with essential AI capabilities.

Puneet Chandok, President of Microsoft India and South Asia, emphasized the transformative impact of AI, stating, "In the last 12 months, Microsoft has been a co-pilot in making AI a reality in India, from boardrooms to classrooms and communities. Today’s announcement strengthens our belief in India’s potential and our resolve to equip the country with future-ready skills needed to excel globally."

Notably, 65% of those trained in the first phase of ADVANTA(I)GE India were women, and 74% came from Tier II and Tier III cities.

Building an AI Ecosystem

To further bolster India’s AI ecosystem, Microsoft Research (MSR) India has launched an AI Innovation Network. This initiative fosters collaboration with digital natives and start-ups, accelerating the transition of AI research into practical business solutions. The network already collaborates with companies like Physics Wallah to enhance personalised education tools using AI.

Microsoft also signed an MoU with SaaSBoomi, India’s premier B2B start-up community, to accelerate the growth of the AI and SaaS ecosystem. Over the next five years, this partnership aims to support over 5,000 start-ups, create 200