Microsoft to invest $17.5 billion in India; CEO Satya Nadella thanks PM Narendra Modi

Microsoft will invest $17.5 billion in India. Chief executive Satya Nadella said in a post on social media platform X, formerly Twitter. The investment comes as software giant races to build infrastructure in one the world's fastest growing digital markets. Microsoft CEO called it the company's largest investment in Asia. "Today we are announcing our largest investment in Asia — $17.5 billion over four years (CY 2026 to 2029) — to advance the country’s cloud and artificial intelligence (AI) infrastructure, skilling and ongoing operations. This investment builds on the US$3 billion investment announced earlier this year, which we are on track to spend by the end of CY2026," Microsoft said in a statement.

Also read | 'When it comes to AI ...': PM Modi hails Microsoft's $17.5 bn investment; claims 'youth will harness this opportunity'

Microsoft CEO meets PM Modi

Microsoft's announcement follows Satya Nadella’s meeting with the Prime Minister Narendra Modi, ahead of the company's India AI tour. In their meeting, both leaders are said to have discussed the country’s AI roadmap and growth priorities. Microsoft said that the company's investment in India focuses on three pillars -- scale, skills and sovereignty -- aligned with the Prime Minister’s vision of building a comprehensive ecosystem that drives AI innovation and access at a national scale.


"Thank you, PM @narendramodi ji, for an inspiring conversation on India’s AI opportunity. 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. @PMOIndia," Satya Nadella wrote.

Responding to Nadella, PM Modi wrote, "When it comes to AI, the world is optimistic about India! Had a very productive discussion with Mr. Satya Nadella. Happy to see India being the place where Microsoft will make its largest-ever investment in Asia. The youth of India will harness this opportunity to innovate and leverage the power of AI for a better planet."

This is Microsoft CEO's second visit to India this year.

Speaking on Microsoft investment, Ashwini Vaishnaw, Union Minister of Electronics & Information Technology, said, “As AI reshapes the digital economy, India remains committed to innovation anchored in trust and sovereignty. Microsoft’s landmark investment signals India’s rise as a reliable technology partner for the world. This partnership will set new benchmarks and drive the country’s leap from digital public infrastructure to AI public infrastructure.”

Puneet Chandok, President, Microsoft India and South Asia, said, “Microsoft has been part of India’s fabric for more than three decades. As the nation moves confidently into its AI-first future, we are proud to stand as a trusted partner in advancing the infrastructure, innovation and opportunity that can power a billion dreams. Building on the $3 billion investment announced in January 2025, our new $17.5 billion commitment and deep partnership across India’s technology ecosystem are focused on turning India’s AI ambition into impact for every citizen..”

Microsoft: Will have the largest hyperscale presence in India

Microsoft announced that the company's new investment will be used to continue to scale its cloud and AI infrastructure, skilling initiatives and ongoing operations across India. This includes company's workforce of more than 22,000 employees across Bengaluru, Hyderabad, Pune, Gurugram, Noida and other cities.

Software giant shared its plans to have the largest hyperscale presence in India with its new datacenter going live mid-2026. "This will be our largest hyperscale region in India, comprising three availability zones — roughly equivalent in size to two Eden Gardens stadiums combined," it said in a statement.

Earlier this year, during his visit to India, Nadella had announced plans to invest $3 billion in India on AI and cloud infrastructure over the next two years.