New Delhi, Dec 9 (NationPress) In a significant move, global technology leader Microsoft declared on Tuesday its intention to invest $17.5 billion in India over a four-year period (2026-2029) aimed at enhancing the country's AI capabilities. Prime Minister Narendra Modi remarked that the youth of India are poised to capitalize on this opportunity to innovate and utilize AI for a more sustainable planet.

"We are unveiling our largest investment in Asia—$17.5 billion over four years (CY 2026 to 2029)—to bolster India’s cloud and artificial intelligence (AI) infrastructure, skill development, and ongoing operations. This investment is in addition to the $3 billion investment we announced earlier this year, which we are on track to utilize by the end of CY2026," stated Microsoft.

The announcement followed a meeting between Microsoft Chairman and CEO Satya Nadella and Prime Minister Modi.

"Thank you, Prime Minister Narendra Modi, for a motivating dialogue on India's AI potential. To aid in fulfilling the country’s aspirations, Microsoft is pledging $17.5 billion—our largest investment to date in Asia—to construct the infrastructure, skills, and sovereign capabilities necessary for an AI-driven future in India," Nadella expressed in a post on X.

In response to Nadella's remarks, PM Modi tweeted: "When it comes to AI, the world is optimistic about India!"

"Had a very fruitful discussion with Mr. Satya Nadella. Delighted to see India chosen as the site for Microsoft's largest-ever investment in Asia. The youth of India will seize this chance to innovate and utilize the power of AI for a better planet," he added.

Microsoft emphasizes that India is at a crucial juncture in its AI journey, characterized by scalable impact, and is determined to take the lead. As technology serves as a catalyst for inclusive growth and economic transformation, India is emerging as a prominent AI nation.

Nadella has arrived in India for an extensive AI tour.

During the meeting with PM Modi, the two leaders reviewed the framework and growth objectives related to AI in India. Microsoft's investment is centered around three core pillars—scale, skills, and sovereignty—aligned with the Prime Minister's vision of creating a holistic ecosystem that fosters AI innovation and accessibility nationwide, according to the company.

The new investment will facilitate the expansion of Microsoft's cloud and AI infrastructure, skill development initiatives, and ongoing operations throughout India. This encompasses a workforce of over 22,000 employees across cities such as Bengaluru, Hyderabad, Pune, Gurugram, Noida, and others, reflecting the diversity of Microsoft's operations. These teams contribute to every aspect of product development—from model creation to engineering and product innovation. They are instrumental in driving innovation across Microsoft's AI stack—from infrastructure to application platforms to products—while managing hyperscale data centers and providing nationwide sales and support.

One of the primary goals of Microsoft's investment is to establish secure, sovereign-ready hyperscale infrastructure to facilitate AI adoption in India. A key component of this initiative is the substantial progress being made at the India South Central cloud region in Hyderabad, which is set to launch in mid-2026. This will be Microsoft's largest hyperscale region in India, featuring three availability zones—a size comparable to two Eden Gardens stadiums combined, as noted in the statement.

The company also plans to enhance the three currently operating data center regions in Chennai, Hyderabad, and Pune. This expansion will offer organizations across India greater options and resilience, enabling low-latency, mission-critical performance for enterprises, startups, and public sector institutions.

Union Minister of Electronics & Information Technology Ashwini Vaishnaw stated: "As AI transforms the digital economy, India remains committed to innovation grounded in trust and sovereignty. Microsoft's landmark investment signifies India's emergence as a dependable technology partner globally. This collaboration will establish new standards and propel the nation’s transition from digital public infrastructure to AI public infrastructure."

Microsoft India's President Puneet Chandok remarked: "Building on the previously announced $3 billion investment from January 2025, Microsoft's new $17.5 billion commitment and strong partnership across India’s technology ecosystem aim to turn the nation's AI aspirations into real benefits for all citizens. This transformation is founded on three pillars: hyperscale infrastructure to operate AI at scale, sovereign-ready solutions that ensure trust, and skilling programs that empower every Indian to not just participate in the future but also to shape it."