Microsoft Announces Largest-Ever Asian Investment: $17.5 Billion for AI Data Centers in India

On Tuesday Eastern Time, Microsoft unveiled a $23 billion global AI investment package, including its biggest commitment ever in Asia: $17.5 billion over four years (2026–2029) for cloud and artificial intelligence infrastructure in India, aimed at accelerating the country’s AI ambitions.  

 

Separately, Microsoft plans to invest more than C$7.5 billion (about $5.42 billion) in Canada over the next two years, bringing its total 2023–2027 Canadian AI commitment to C$19 billion (roughly $13.7 billion).

 

Massive Push into India  

Microsoft CEO Satya Nadella, currently on a three-day visit to India, met with senior officials and will attend AI-focused events in tech hub Bengaluru and financial center Mumbai.  

 

After meeting Prime Minister Narendra Modi in New Delhi, Nadella revealed the India plan in an X post.  

 

 

Nadella said the investments will help India build the “infrastructure, skills, and sovereign capabilities” needed for its AI future.  

 

India is one of the world’s fastest-growing digital markets, and this move underscores the fierce global race by tech giants to expand footprints.  

 

Just last month, Google pledged $15 billion over five years for India, including its first AI center in Visakhapatnam, which will become one of Google’s largest globally.

India Actively Courting AI Investment  

With the AI boom in full swing, India has set ambitious goals to become a global leader in AI and semiconductor manufacturing. The government has rolled out fiscal incentives to lure chipmakers and Big Tech, aiming to bolster innovation, create jobs, and reduce reliance on imported technology.  

 

After meeting Nadella, Modi posted on X: “The world is bullish on India when it comes to AI.”  

 

Microsoft’s latest India plan builds on an earlier $3 billion commitment announced this year for cloud/AI infrastructure, new data centers, and workforce training over two years.  

 

Microsoft has operated in India for over three decades, with more than 22,000 employees, and has steadily expanded cloud and data-center capacity to meet advanced computing demand.  

 

The company said it aims to significantly grow its existing India footprint. A brand-new data center in Hyderabad — India’s fifth-largest city — will become Microsoft’s largest hyperscale facility in the country when it opens mid-2026.  

 

Microsoft will also expand three existing centers in Chennai, Hyderabad, and Pune, while honoring its January pledge to equip 20 million Indians with AI skills by 2030.  

 

According to real estate consultancy Colliers, India’s data-center capacity is forecast to more than triple by 2030 to around 4.5 GW — 1 GW is roughly enough to power 750,000 average U.S. homes.

C$7.5 Billion for Canada  

Earlier Tuesday, Microsoft said it will invest over C$7.5 billion in Canada over the next two years, with new cloud capacity coming online in the second half of 2026.  

 

This forms part of Microsoft’s broader C$19 billion Canadian AI commitment from 2023 to 2027.  

 

The investment will expand Azure local cloud services. Microsoft is also partnering with Canadian AI startup Cohere to offer its advanced models on Azure.