Microsoft Chairman and CEO Satya Nadella announced a landmark $3 billion investment in Indias cloud and AI infrastructure during the Microsoft AI Tour in Bengaluru. This strategic move aims to accelerate AI innovation and aligns with Prime Minister Narendra Modis vision of transforming India into a developed nation (Viksit Bharat) by 2047.

The investment will span over the next two years and includes the establishment of new data centers across India, complementing Microsofts existing three data center regions in the country. A fourth region is set to go live by 2026, enhancing Indias scalable AI computing ecosystem to meet the needs of its rapidly expanding AI startups and research community.

To ensure a holistic approach to growth, Microsoft has committed to skilling 10 million people in AI technologies by 2030 as part of the ADVANTA(I)GE India program. This initiative underscores Microsofts dedication to bolstering Indias workforce for the future of work, while reinforcing the countrys long-term global competitiveness.

India is rapidly becoming a leader in AI innovation, unlocking new opportunities across the country, said Nadella. The investments in infrastructure and skilling we are announcing today reaffirm our commitment to making India AI-first, and will help ensure people and organizations across the country benefit broadly.

AI Innovation Network and Collaborative Ecosystem

In conjunction with this investment, the Microsoft Research Lab has launched an AI Innovation Network. This groundbreaking initiative is designed to bridge the gap between research and real-world applications, fostering collaborations with digital-native enterprises to create usable business solutions. For example, MSR India is collaborating with Physics Wallah on mathematical reasoning and engaging in discussions with other companies on topics like causal inference, optimizing Indic large language models (LLMs), and reinforcement learning.

Microsoft has also partnered with SaaSBoomi to propel Indias AI and SaaS ecosystem toward a trillion-dollar economy. This collaboration aims to impact over 5,000 startups and 10,000 entrepreneurs, further solidifying Indias position as a global technology hub.

Commitment to Responsible AI

Microsofts approach to AI development is grounded in its six core principles: fairness, reliability and safety, privacy and security, inclusiveness, transparency, and accountability. This investment reflects Microsofts role as a global leader in responsible AI, ensuring its technology serves the public good. All AI services and infrastructure will operate under Microsofts AI Access Principles and industry-leading responsible AI standards.

Nadella highlighted the transformative impact of Microsofts AI technologies on its Indian clients. Companies like Infosys, Air India, Meesho, Tech Mahindra, and MakeMyTrip are already leveraging Microsofts AI capabilities to enhance efficiency and innovation. For instance, IT firm Persistent has reduced contract negotiation times by 70% using Microsoft 365 Copilots Contract Assist.

Aligning with Indias Vision for 2047

As global competition among tech giants intensifies, India has become a focal point for large-scale investments. Companies like Amazon have also committed significant resources to the Indian market. Microsofts latest initiative underscores its deep commitment to Indias AI-driven transformation, helping the country achieve its vision of becoming a global AI powerhouse by 2047.