Microsoft Announces $17.5 Billion Investment to Power India’s AI Future

Microsoft announced a $17.5 billion (₹1.45 lakh crore) investment in India, it’s largest in Asia, to boost AI infrastructure, skills, and sovereign capabilities. CEO Satya Nadella revealed the commitment on X after meeting Prime Minister Narendra Modi on December 9.

Nadella said Microsoft will support India’s “AI-first future” through infrastructure, skilling and sovereign tech capabilities. PM Modi called the meeting “productive” and said India’s youth will leverage AI for global good.

Microsoft said India is emerging as a “frontier AI nation”, and the investment will roll out from 2026 to 2029. The investment will focus on three pillars: scale, skills, and sovereignty, aligning with India’s national AI roadmap.

IT Minister Ashwini Vaishnaw said the move highlights India’s rise as a reliable global technology partner. The new commitment builds on Microsoft’s earlier $3 billion (₹25,000 crore) investment announced in January 2025.

Microsoft will double its skilling program, training 20 million people by 2030 and will launch a new hyperscale data centre in mid-2026, giving India Microsoft’s largest cloud footprint in the region.

The company said 310 million informal workers will benefit from AI integration into e-Shram and NCS platforms. Microsoft will launch Sovereign Public Cloud and Sovereign Private Cloud solutions customized for India.

On the same day, PM Modi met Intel CEO Lip-Bu Tan, after Intel signed an MoU with Tata Group for semiconductor manufacturing. Modi also met Cognizant CEO Ravi Kumar S. to discuss expanding AI adoption, education, and skilling.