Microsoft Bets Big On India With Largest Data Center Set For 2026 Launch

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BENGALURU – Microsoft is expanding its India artificial intelligence footprint with plans to launch its largest data center in the country by mid-2026, as demand for cloud and AI services continues to grow rapidly.

The new facility, located in Hyderabad, is part of Microsoft’s broader investment push in India. The company announced last year that it would invest $17.5 billion in India, its largest investment commitment in Asia, in addition to the $3 billion pledged earlier in 2025.

Microsoft is seeing growing demand in India for its Azure cloud platform and Copilot 365 AI assistant, Reuters reported.

India has become an important market for major US technology companies expanding their AI businesses. Like rivals Alphabet and Amazon, Microsoft sees India’s large internet user base and technology workforce as central to its long-term AI growth plans, the news agency noted.

The company employs more than 22,000 people across India.

Microsoft’s growing AI customer base in India includes major technology companies such as Infosys, Cognizant, and Tata Consultancy Services, which each use about 50,000 Copilot licenses, Reuters said.