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Tech giant Microsoft has big plans for India in 2025. Microsoft Corp. announced it will invest $3 billion in India over two years to expand the country’s AI capacity and its own Azure cloud-computing services business in the nation, citing Chairman and CEO Satya Nadella speaking at a Microsoft AI event in Bangalore on Jan. 7.
“I am really really excited to announce the single largest expansion we have ever done in India by putting USD 3 billion additional dollars to expand our Azure capacity,” said Nadella.
READ: In shareholder letter, Satya Nadella touts Microsoft’s record AI growth, expands future vision (October 24, 2024)
The investment aims to accelerate AI innovation in India, which is pivotal for achieving Indian Prime Minister Narendra Modi’s vision of becoming a developed nation, Viksit Bharat by 2047, the company’s statement said.
Microsoft also noted that it will support the country’s long-term competitiveness by training 10 million people over the next five years with AI skills, as part of the second edition of its ADVANTA(I)GE India program.
The announcement from Nadella comes a day after his meeting with Modi, in which they discussed various topics, including technology and AI. After his meeting with the prime minister, Nadella took to X to express his gratitude for the audience.
Thank you, PM @narendramodi ji for your leadership. Excited to build on our commitment to making India AI-first and work together on our continued expansion in the country to ensure every Indian benefits from this AI platform shift. pic.twitter.com/SjfiTnVUjl
— Satya Nadella (@satyanadella) January 6, 2025
Microsoft is also set to expand its cloud and AI infrastructure across datacenter campuses in India. The tech giant already has three data center regions in the market, and the fourth ready to go live in 2026.
The $3 billion dollar investment aims to develop a scalable AI computing ecosystem to meet the growing demands of India’s rapidly expanding AI start-ups and research community.
“It was indeed a delight to meet you, @satyanadella! Glad to know about Microsoft’s ambitious expansion and investment plans in India. It was also wonderful discussing various aspects of tech, innovation and AI in our meeting,” said Modi in response to Nadella’s post on X.
Microsoft has had a significant presence in India for over two decades, with investments contributing to the country’s tech ecosystem and economy. The company established its first office in India in 1990, marking the beginning of its long-term commitment to the country.
In 1998, Microsoft launched its development centre in Bangalore, focusing on software development, engineering, and research. This move helped India become a global hub for IT services. Over the years, Microsoft has continued to invest in India by establishing additional research and development centres in cities like Hyderabad and Noida.
READ: Microsoft gives more power to CEO Satya Nadella as chairman (June 17, 2021)
In 2015, Microsoft announced its India Development Center as one of the largest in the world, emphasizing its focus on innovation and collaboration with Indian talent. The company has also introduced several initiatives aimed at skill development, such as Microsoft Learn and Project Sangam, which provide online training resources to enhance the digital skills of the Indian workforce.
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