Microsoft to Invest $17.5 Billion in India’s AI Push

Nadella unveils Asia’s biggest Microsoft investment after meeting PM Modi

  • Microsoft announces $17.5 billion investment to build India’s AI infrastructure.
  • PM Modi welcomes the move, calling it proof of global optimism about India’s AI future.
  • Investment to fund data centres, sovereign AI systems and large-scale skilling.
  • Govt says the partnership strengthens India’s rise as a global tech hub.

GG News Bureau
New Delhi, 12th Dec: Microsoft has announced a massive $17.5 billion investment to build India’s artificial intelligence infrastructure, marking its largest-ever commitment in Asia. The announcement followed a meeting between Microsoft Chairman and CEO Satya Nadella and Prime Minister Narendra Modi.

Nadella said the investment will help create “infrastructure, skills and sovereign capabilities needed for India’s AI-first future.” The pledge adds to a previous $3 billion commitment, bringing Microsoft’s focused investment in India to more than $20 billion.

The new funds, to be deployed between 2026 and 2029, are aimed at expanding hyperscale data centres, boosting cloud capacity, enabling sovereign AI models and launching large-scale skilling programmes intended to prepare millions of Indians for an AI-driven economy.

Prime Minister Narendra Modi welcomed the announcement, calling it evidence of the world’s confidence in India’s technological trajectory. “When it comes to AI, the world is optimistic about India,” he posted on X, expressing hope that India’s youth will drive innovation and use AI for global good.

Union IT Minister Ashwini Vaishnaw, who also met Nadella, said discussions covered “AI for public good, frontier technologies and data sovereignty,” adding that the investment reflects India’s emergence as a trusted global technology partner.

The commitment is expected to accelerate India’s position as a central hub in the global AI landscape by strengthening infrastructure, supporting homegrown innovation and expanding the country’s digital and AI capabilities at population scale.