In a move to deepen its presence in India, Microsoft Chairman and CEO Satya Nadella announced a $3 billion investment in cloud and artificial intelligence (AI) infrastructure and skilling initiatives over the next two years. The announcement, made during the Microsoft AI Tour in Bengaluru, underscores the tech giant’s commitment to bolstering India’s digital economy and aligns with Prime Minister Narendra Modi’s vision of a developed nation (“Viksit Bharat”) by 2047.
The investment, the largest by Microsoft in India to date, will span the Central, South, and West regions, Jio India West, Jio India Central and include the establishment of new data centers. “India is rapidly becoming a leader in AI innovation, unlocking new opportunities across the country,” Nadella stated. “The investments in infrastructure and skilling we are announcing today reaffirm our commitment to making India AI-first, ensuring people and organizations across the country benefit broadly.”
With its latest investment, Microsoft is reinforcing India’s position as a key player in the global AI revolution, paving the way for widespread adoption and localized innovation. Nadella also highlighted that India will have the largest developer community on GitHub by 2028.
Accelerating AI Skilling and Innovation
As part of its ADVANTA(I)GE India program’s second edition, Microsoft plans to train 10 million people in AI skills over the next five years, aiming to enhance the country’s long-term competitiveness. Nadella emphasised India’s rising prominence in the AI landscape, highlighting the rapid adoption of multi-agent frameworks and innovations tailored to Indian languages and industries.
Puneet Chandok, president, Microsoft India and South Asia said, “In the last 12 months Microsoft has been a copilot to making AI a reality in India, taking it from boardrooms to classrooms, commerce to communities, and finance to farmers. Today’s announcement strengthens our belief in India’s potential and our resolve to equip the country with the resources and future-ready skills needed to excel in the global marketplace. We will continue to use AI to unlock possibilities for the next few decades and ensure communities across the country have access to the compute they need to prosper in the AI era.”
Driving sustainable AI infrastructure
Microsoft’s investment also focuses on sustainable infrastructure, integrating renewable energy solutions and liquid-cooled AI accelerators to enhance the efficiency of its Azure data centers. Nadella described this expansion as part of a broader vision to create a “data-driven ecosystem” fueled by “data gravity,” or the proximity to quality data that drives innovation. “Our goal is to provide the infrastructure and tools that enable organizations to harness the power of AI efficiently,” Nadella said, emphasizing the importance of localized solutions tailored to India’s diverse market.
Foundry: A new frontier for AI development
Microsoft also unveiled Foundry, a pioneering app server designed to integrate AI models for specific use cases. Supporting platforms like OpenAI’s models, Llama, and Mistral, Foundry will cater to innovations in Indian languages and sectors. Nadella highlighted model orchestration as the next phase of AI development, positioning India as a testing ground for advanced frameworks.
Government collaboration for AI readiness
Jayant Chaudhary, Minister of State (Independent Charge), Ministry of Skill Development and Entrepreneurship said, “India’s vibrant youth and tech talent are key to shaping the future of AI. Through the ‘AI for India’ mission, we aim to empower citizens with cutting-edge AI skills, driving innovation, creating jobs, and bridging the digital divide. Collaborations with global leaders like Microsoft and similar companies are pivotal in this transformation. By equipping our workforce, especially women and youth, with advanced skills, we are building an AI-ready India, poised for digital leadership and sustainable economic growth.” By fostering a data-driven AI ecosystem and equipping the workforce with advanced skills, the company aims to propel India’s digital and economic transformation for decades to come.