Microsoft Commits Rs 1.5 Lakh Crore In India AI Investment

Microsoft Corp. will invest $17.5 billion or Rs 1.5 lakh crore over four years to help build the artificial intelligence infrastructure, skills, and sovereign capabilities in India, Chairman and CEO Satya Nadela announced on Tuesday, after meeting Prime Minister Narendra Modi.

The tech major's plan focuses on scaling cloud and computing infrastructure, expanding AI skilling initiatives, and supporting secure, sovereign data systems across sectors.

"To support the country’s ambitions, Microsoft is committing US$17.5B—our largest investment ever in Asia—to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI first future," Nadella said on X.

The latest pledge comes after the US tech giant announced $3 billion investment in India in January for cloud and AI infrastructure over the next two years. Microsoft said it will support the country’s long-term competitiveness by training one crore people over the next five years with AI skills.

"Building on the $3 billion investment announced in January 2025, our new $17.5 billion commitment and deep partnership across India’s technology ecosystem are focused on turning India’s AI ambition into impact for every citizen," said Puneet Chandok, president of Microsoft India and South Asia.

The company employs more than 22,000 employees across Bengaluru, Hyderabad, Pune, Gurugram, Noida and other cities. It will expand three existing operational data center regions in Chennai, Hyderabad and Pune. 

Large tech companies have pledged big ticket investments in India, one of the fastest growing market for AI products.

Amazon expects its planned investment of $12.7 billion in building local cloud and AI infrastructure to benefit 15 million small businesses in India by 2030. The company has set a target to train 4 million government-school students in the next five years, Amazon's SVP for Emerging Markets, Amit Agarwal, said on social platform X.