Investment Boom: From Google To Microsoft, Why Tech Companies Are Investing In India
With a diverse demographic and a strong data-centre ecosystem, the country has emerged as an attractive market for AI-led innovation.
India is emerging as a key global hub for artificial intelligence investment, with some of the world’s most powerful technology companies turning their attention to the country. Industry heavyweights are committing significant resources, drawn by India’s young demographic and its expanding digital ecosystem.
India has attracted fresh investment commitments totalling roughly $67.5 billion in recent months, with Amazon, Microsoft and Google set to play a central role in building the nation’s AI backbone.
Amazon
On Dec. 10, Amazon revealed plans to invest $35 billion into India by 2030, underlining the country’s growing significance to the company’s global strategy.
“This investment will focus on business expansion as well as three strategic pillars: AI-driven digitisation, export growth, and job creation,” the company said in a statement.
Microsoft
During a meeting with Prime Minister Narendra Modi on Dec. 9, Microsoft CEO Satya Nadella unveiled plans to invest $17.5 billion in India by 2029, marking the company’s largest financial commitment anywhere in Asia.
“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 posted on X.
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In October, Google announced plans to invest $15 billion in a massive artificial intelligence hub in Visakhapatnam, Andhra Pradesh. The investment will span five years, from 2026 to 2030.
“The multi-faceted investment in Visakhapatnam will deploy cutting-edge infrastructure, establish a new international subsea gateway, and deliver gigawatt-scale compute to power services globally,” the company said.
Why Tech Companies Are Investing In India
Big tech companies are drawn to India due to its strong data-centre ecosystem, deep talent base, vast digital audience and long-term market potential.
The country may lag the US and China in developing indigenous foundational AI models and lacks a large, homegrown AI infrastructure player, but it is seeking to capitalise on its deep-rooted IT expertise to deploy AI solutions at scale, presenting a lucrative market for Big Tech companies.
AI adoption goes beyond owning powerful models or computing resources, S Krishnan, secretary at the Ministry of Electronics and Information Technology, said in an interview with a media outlet. He said effective use of AI depends on a strong ecosystem and a sizeable talent base capable of deploying these technologies at scale.
Building effective AI systems demands vast volumes of data drawn from a wide range of languages, economies and cultures. India, given its size and rising internet penetration, offers all three at scale.
With a population exceeding 1.4 billion, hundreds of living languages and a fast-growing digital user base embracing everything from online payments to telemedicine and public services, the country presents one of the most demanding environments for training AI.
Models that perform well in India are widely seen as better equipped to operate across global markets, positioning the country as a testing ground for AI innovation rather than merely a destination for deployment.
