Microsoft CEO Satya Nadella has announced the tech giant’s largest investment in India to date—a $3 billion commitment toward artificial intelligence (AI) and cloud infrastructure over the next two years. The announcement was made during the Microsoft AI Tour in Bengaluru and emphasizes the company’s vision of an AI-driven digital economy in India.
“India is rapidly becoming a leader in AI innovation, unlocking new opportunities across the country,” Nadella remarked. This investment will establish new data centers in India’s Central, South, and West regions, aligning with Prime Minister Narendra Modi’s vision of a “Viksit Bharat” (developed India) by 2047.
Microsoft’s focus on India is reflective of the country’s growing importance as a global AI hub. The company plans to scale infrastructure and advance AI skills while also fostering local innovation. Nadella highlighted that India is set to have the largest developer community on GitHub by 2028, underscoring the country’s rapid embrace of technology.
Advancing Skills for the AI Era
As part of its broader initiative, Microsoft is launching the second edition of its ADVANTA(I)GE India program, aiming to train 10 million individuals in AI skills over the next five years. This move is geared toward empowering India’s youth, women, and underserved communities, aligning with the government’s “AI for India” mission.
Jayant Chaudhary, India’s Minister of State for Skill Development and Entrepreneurship, emphasized the collaboration between the government and companies like Microsoft. “India’s vibrant youth and tech talent are key to shaping the future of AI,” he said. “By equipping our workforce with advanced skills, we are building an AI-ready India, poised for digital leadership and sustainable economic growth.”
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Microsoft India and South Asia President Puneet Chandok added, “In the last 12 months, Microsoft has been a copilot in making AI a reality in India, taking it from boardrooms to classrooms and from commerce to communities.” The company’s initiatives reflect a commitment to democratizing AI by enabling access to cutting-edge tools and resources across sectors.
Building Sustainable Infrastructure
Microsoft’s investment also focuses on building sustainable and efficient AI infrastructure. The company plans to integrate renewable energy solutions and liquid-cooled AI accelerators into its Azure data centers to enhance efficiency while reducing environmental impact.
Nadella described this expansion as part of a vision to create a “data-driven ecosystem” where innovation thrives. He emphasized the importance of “data gravity,” or the proximity to high-quality data that drives breakthroughs in technology.
Another significant step is the unveiling of Foundry, a pioneering app server designed to integrate AI models for specific use cases. Foundry supports platforms such as OpenAI’s models, Llama, and Mistral, and will cater to innovations in Indian languages and industries. Nadella believes that Foundry will position India as a testing ground for advanced AI frameworks, boosting localized solutions for diverse markets.
India: The New Battleground for AI
Microsoft’s announcement is part of a broader trend where global tech leaders are increasingly investing in India. Nvidia CEO Jensen Huang and Meta’s chief AI scientist Yann LeCun have recently visited the country, signaling its growing role as a global AI hub.
Microsoft President Brad Smith recently noted the company’s broader AI ambitions, revealing that Microsoft is on track to invest $80 billion in AI this fiscal year worldwide. This includes building data centers, training AI models, and deploying cloud-based applications.
India, with its vast talent pool and rapidly expanding digital economy, has become a key battleground for AI innovation. By fostering partnerships and scaling infrastructure, Microsoft aims to drive both technological and economic transformation, positioning the country as a global AI leader.
With these developments, India’s digital and economic future appears poised for a significant leap forward, driven by investments, skills, and innovation that promise long-term sustainability and growth.