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In a significant development for India’s technology sector, Microsoft Corporation has announced its largest ever investment in Asia, committing $17.5 billion to bolster the nation’s artificial intelligence infrastructure and capabilities. The announcement came following a high level meeting between Microsoft CEO Satya Nadella and Prime Minister Narendra Modi on December 9, 2025, marking the technology leader’s second visit to India this year.
Record Investment in AI Infrastructure
This substantial four year investment plan encompasses multiple strategic objectives designed to position India at the forefront of the global AI revolution. The financial commitment will primarily focus on expanding cloud infrastructure, enhancing data center capabilities, and developing a robust talent pipeline equipped with advanced AI skills. Microsoft plans to establish a new data center region in Hyderabad, designated as India South Central, which is expected to become operational by mid 2026. Additionally, the company will expand its existing facilities in Chennai, Hyderabad, and Pune to deliver improved services with lower latency to enterprises, startups, and government organizations.
Doubling Down on Workforce Development
The human capital development component of this initiative represents an ambitious scaling of Microsoft’s previous commitments. The technology giant has doubled its original pledge and now aims to equip 20 million Indians with AI competencies by 2030. This revised target comes after the company successfully trained 5.6 million individuals since launching its ADVANTA(I)GE India and Microsoft Elevate programs in January 2025. The achievement significantly exceeded initial expectations and demonstrates strong demand for AI skills across the country.
A noteworthy aspect of Microsoft’s skills initiative involves collaboration with the Directorate General of Training under the Ministry of Skill Development and Entrepreneurship. This partnership introduces a comprehensive one year micro degree program titled “AI Programming Assistant” across 33 National Skill Training Institutes. The curriculum, spanning 1,600 hours of instruction, mandates that at least half of its participants be women, reflecting a commitment to gender diversity in technology education.
Strategic Partnership for Technological Sovereignty
Union Minister Ashwini Vaishnaw emphasized that this partnership represents India’s evolution from digital public infrastructure to AI public infrastructure, establishing new benchmarks for technological sovereignty and innovation. Prime Minister Modi expressed optimism about India’s youth leveraging these opportunities to drive innovation and harness AI’s potential for global benefit.
With over 22,000 employees already operating across major Indian cities, Microsoft’s expanded commitment reinforces India’s strategic importance in the global technology landscape and underscores international confidence in the nation’s capacity to lead the next wave of artificial intelligence advancement.
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