Microsoft Unveils Massive Global AI Investments, Prioritizing India’s Rapidly Growing Digital Market

Microsoft has announced more than $23 billion in new global artificial intelligence investments, with the majority directed toward India as the tech giant accelerates its presence in one of the world’s fastest-growing digital economies. CEO Satya Nadella revealed that Microsoft will invest $17.5 billion in India beginning in 2026, marking its largest AI and cloud-infrastructure commitment in Asia. This long-term plan expands on a previously pledged $3 billion and is expected to give Microsoft the most extensive cloud-computing footprint in the country.

India—home to nearly a billion internet users and a vast pool of tech talent—has rapidly become a critical hub for U.S. tech companies building AI infrastructure. With limited domestic chip-manufacturing capabilities, India is betting on large-scale data center development to secure its position in the global AI boom. Google recently joined this momentum, announcing a $15 billion plan to build an AI data center in Andhra Pradesh.

Nadella, who is in India for a three-day AI conference tour across New Delhi, Bengaluru, and Mumbai, said the investment will support India’s “AI-first future” by boosting infrastructure, digital skills, and sovereign capabilities. Microsoft confirmed it is constructing a major hyperscale data center in Hyderabad, expected to launch in mid-2026, while also expanding existing regions in Chennai, Hyderabad, and Pune. The company has doubled its commitment to equip 20 million Indians with essential AI skills by 2030.

The announcement comes amid ongoing U.S.–India trade tensions but aligns with a broader global push by major cloud providers, which are projected to spend over $400 billion on AI this year alone. Microsoft also revealed more than C$7.5 billion in new investments for Canada, expanding Azure capacity and deepening its partnership with AI startup Cohere. Additional commitments include $10 billion in Portugal and $15 billion in the UAE, as Microsoft scales worldwide to support rapidly growing AI demand.