Microsoft has launched its fourth cloud region in India, bringing its new India South Central data centre region online in Hyderabad as part of its broader $20.5 billion investment in the country's cloud and artificial intelligence infrastructure, the company said in a statement.
The Hyderabad region has been built with three Availability Zones, providing enterprises with a resilient architecture designed to support mission-critical AI and cloud workloads.
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The company said the infrastructure is aligned with India's regulatory and seismic requirements, enabling customers to run eligible Microsoft Cloud services locally with enterprise-grade security, governance and compliance.
Microsoft also said the Hyderabad data centre will use zero-water cooling technology, supporting its broader sustainability goals alongside expanding renewable energy procurement in India.
With the addition of Hyderabad, Microsoft now operates cloud regions in Pune, Chennai, Mumbai and Hyderabad, giving it what the company describes as India's largest hyperscale cloud footprint.
It also runs two data centres in partnership with Jio, further expanding its domestic cloud capacity.
The company said the new region is intended to help organisations accelerate AI adoption by offering low-latency infrastructure closer to where data is generated and processed.
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Microsoft expects the facility to support businesses as they move from AI experimentation to production-scale deployments while meeting data residency and sovereignty requirements.
The Hyderabad cloud region has already attracted early enterprise customers, which plan to use the infrastructure to strengthen business continuity, expand cloud capacity and scale AI-driven applications.
Microsoft President for India and South Asia, Puneet Chandok, said the investment is aimed at strengthening India's AI ecosystem by combining large-scale infrastructure with security, skills and sovereign-ready cloud capabilities. He added that the company is investing not only to meet rising demand but also to position India as a global leader in AI adoption.
The launch comes as Microsoft's Azure business continues to gain momentum in the country. The company said Azure has delivered strong double-digit growth in India over the past two years, while enterprise adoption of AI tools has accelerated across sectors.
Microsoft added that more than 90% of NIFTY 100 companies use Microsoft 365 Copilot, with major IT services firms such as Infosys, TCS, Wipro and LTIMindtree together deploying more than 400,000 Copilot seats.
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