Microsoft to invest $17.5B in India by 2029 as AI race accelerates

December 9, 2025

TL;DR

Microsoft will invest $17.5 billion in India from 2026-2029.
The investment will expand AI and cloud infrastructure, including new data centers.
Microsoft aims to equip 20 million Indians with AI skills by 2030.
A new data center region in Hyderabad is planned by mid-2026.
AI capabilities will be integrated into Indian government platforms like e-Shram and National Career Service.
Microsoft is launching new sovereign cloud options for Indian customers.
Google also recently announced a $15 billion investment in India.
Challenges for hyperscalers in India include patchy power, high energy costs, and water scarcity.

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