NEW DELHI (AP) — Microsoft announced Tuesday it will make its largest-ever Asian investment of $17.5 billion in India over the next four years to advance the country’s cloud and artificial intelligence infrastructure.
CEO Satya Nadella revealed this in an X post after meeting Indian Prime Minister Narendra Modi in New Delhi.
Nadella said Microsoft is committed to investing in helping India build the “infrastructure, skills and sovereign capabilities” needed for an artificial intelligence future.
The announcement highlights growing global competition for major technology companies to expand in India, which has become one of the world’s fastest-growing digital markets.
In October, Google said it would invest $15 billion in India over the next five years to establish the country’s first artificial intelligence center. The center, located in the southern city of Visakhapatnam, will be one of Google’s largest centers in the world.
Nadella is on a three-day visit to India that includes discussions with policymakers and participation in artificial intelligence-focused events in the country’s tech hub Bangalore and financial capital Mumbai.
India has set ambitious goals to become a leading global hub for artificial intelligence and semiconductor manufacturing. The government has launched financial incentives aimed at attracting global chipmakers and major technology companies to strengthen the country’s innovation ecosystem, increase employment and reduce dependence on imported technology.
“When it comes to artificial intelligence, the world is optimistic about India,” Modi told X after meeting Nadella.
Microsoft’s latest India investment plan is its plan announced earlier this year to invest $3 billion over the next two years in building cloud and artificial intelligence infrastructure, as well as new data centers and workforce skills training.
The company has been operating in India for more than three decades, has more than 22,000 employees in the country, and has been expanding cloud and data center capacity to support advanced computing needs.
Microsoft said in a statement that it hopes to expand its ongoing operations in India. It plans to build the largest hyperscale operation in the country, with a new data center set to be operational by mid-2026.
