Microsoft Commits Record $17.5 Billion AI Investment in India: Largest Ever in Asia

New Delhi:

Microsoft CEO Satya Nadella met with Prime Minister Narendra Modi on Wednesday evening, announcing the software giant's largest Asian investment to date – over US$ 17.5 billion (approximately Rs 1.5 lakh crore) dedicated to developing Artificial Intelligence capabilities in India.

"Thank you PM Narendra Modiji for an inspiring conversation on India's AI opportunity. To support the country's ambitions, Microsoft is committing US$ 17.5 billion – our largest investment ever in Asia – to help build the infrastructure, skills, and sovereign capabilities needed for India's AI-first future," Nadella stated following the meeting.

Prime Minister Modi responded enthusiastically: "When it comes to AI, the world is optimistic about India! Had a very productive discussion with 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."

Microsoft released a press statement shortly after the meeting, explaining that this US$ 17.5 billion investment follows an earlier US$ 3 billion commitment to establish cloud and AI infrastructure in Bengaluru over the next two years. The combined investments will ensure Microsoft has "the largest hyperscale presence in India".

"India stands at a pivotal moment in its AI journey... one defined by impact at scale, determined to lead. As technology becomes a catalyst for inclusive growth and economic transformation, the country is emerging as a frontier AI nation. Against this backdrop... today we are announcing our largest investment in Asia - US$17.5 billion over four years..." the company statement elaborated.

Microsoft's nearly US$20 billion commitment over four years highlights India's strategic importance as a valuable market for global software companies racing to build digital infrastructure.

In October, Google CEO Sundar Pichai also met with Prime Minister Modi to discuss plans for Google's artificial intelligence hub in Andhra Pradesh's Visakhapatnam – the company's largest investment in India to date. Google partnered with the Adani Group for this data centre and AI base, which represents its largest hub outside the United States, with plans to invest $15 billion over the next five years.

Amazon has similarly invested billions in building Indian data centres, while the Prime Minister recently met with Qualcomm CEO Cristiano R. Amon to discuss India's advancements in AI, innovation, and skills development.

Last month, during a conference in Delhi, Prime Minister Modi emphasized India's role in shaping global AI frameworks, specifically advocating for "ethical and human-centric AI." He mentioned that his government is already developing policy in this area.

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