Microsoft Pledges ₹1.5 Lakh Crore to Boost India’s AI Growth and Digital Innovation

Microsoft has pledged to invest Rs 1.5 lakh crore (US$ 17.5 billion) into India’s AI infrastructure, skilling and sovereign‑cloud projects, in its largest‑ever Asia‑region commitment to date.

New Delhi | December 10, 2025: Microsoft’s CEO Satya Nadella announced on Tuesday that the company will pour US$ 17.5 billion  roughly Rs 1.5 lakh crore  into building India’s artificial‑intelligence backbone between 2026 and 2029. The announcement came after a high‑profile meeting with Indian Prime Minister Narendra Modi, where both leaders affirmed their shared vision of an “AI‑first” India.

The funds will be used to establish new hyperscale data centers, expand existing ones in cities like Chennai, Hyderabad and Pune, and provide low‑latency cloud infrastructure for businesses and government services. Microsoft also plans to significantly scale up AI‑skilling programs, aiming to train millions of Indians in emerging technologies over the next few years.

This massive investment reflects Microsoft’s confidence in India’s rapidly growing digital market and its potential to become a global AI hub. Industry insiders believe the move could trigger a fresh wave of innovation, particularly in sectors such as healthcare, education, fintech and public services, opening up new opportunities for startups and job‑seekers alike.

The announcement positions India as one of Microsoft’s key strategic markets. With its large pool of tech talent and increasing government focus on digital infrastructure, the country is seen as fertile ground for advanced AI and cloud deployments. As Microsoft scales up operations, India could witness a significant acceleration in AI‑driven services and solutions by the end of the decade.

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