Microsoft commits $23bn to AI, with major focus on India

BENGALURU (Web Desk) – Microsoft has unveiled a $23 billion investment in artificial intelligence, with the bulk of the funding focused on India, the world’s fastest-growing digital market. CEO Satya Nadella said $17.5 billion will be spent in India, building on an earlier $3 billion commitment.

The four-year plan, starting in 2026, will make Microsoft the largest cloud-computing provider in India. The company will develop new data centres, including its largest hyperscale region in Hyderabad, and expand existing centres in Chennai, Hyderabad, and Pune.

Nadella emphasized that the investments aim to build infrastructure, enhance skills, and strengthen sovereign AI capabilities in India. The company has also doubled its pledge to equip 20 million Indians with AI skills by 2030.

The move comes as US tech companies ramp up AI spending, despite concerns about a potential AI bubble. Microsoft also plans AI investments of $5.42 billion in Canada, $10 billion in Portugal, and $15 billion in the UAE.

With India’s billion-strong internet user base and deep tech talent, the country is seen as a key hub for AI development. Total data centre capacity in India is expected to more than triple to 4.5 gigawatts by 2030.