Microsoft to Invest $3 Billion in AI and Cloud Expansion in India

Microsoft CEO Satya Nadella has announced a $3 billion (approximately ₹25,700 crore) investment to enhance the company’s cloud computing and artificial intelligence (AI) capabilities in India. Speaking at a conference attended by startup founders and technology executives, Nadella highlighted the transformative potential of AI in India and pledged to train 10 million people in AI skills by 2030.  

Calling it Microsoft’s "single-largest expansion" in the country, Nadella noted that the investment would significantly bolster the company’s Azure cloud services, which already operate over 60 regions worldwide with more than 300 data centers.

The expansion will focus on strengthening infrastructure in Central India, South India, West India, and South Central India. Collaborations with partners like Jio are expected to further amplify regional capacities. While Nadella did not specify a timeline for the investment, he expressed excitement about the rapid diffusion of AI in India.  

India is rapidly emerging as a global hub for AI innovation, attracting visits from prominent tech leaders such as Nvidia CEO Jensen Huang, AMD CTO Lia Su, and Meta’s Chief AI Scientist Yann LeCun. Nadella emphasized that India’s unique ecosystem of millions of skilled programmers and leading technology services providers like Tata Consultancy Services, Infosys, and Wipro positions the country as a leader in AI-driven opportunities.  

During his visit, Nadella met with Prime Minister Narendra Modi to discuss Microsoft’s role in advancing India’s AI mission, the India Stack initiative, and fostering entrepreneurial aspirations. Sharing a picture of their meeting on X (formerly Twitter), Nadella expressed enthusiasm for strengthening India’s AI capabilities, stating, "Excited to build on our commitment to making India AI-first." Prime Minister Modi responded positively, commending Microsoft’s ambitious expansion plans.  

As part of Microsoft’s skilling initiatives, the company plans to empower 10 million individuals with AI-related training by 2030. This follows a previously announced commitment to provide AI training to 2 million people in India by 2025, with a focus on reaching smaller cities and rural areas. Nadella emphasized that these efforts align with Microsoft’s mission to empower every person and organization to thrive in the AI era, highlighting the importance of leveraging India’s human capital to maximize technological potential.  

Nadella also underscored the global implications of AI investments, noting that advancements in AI infrastructure could soon correlate directly with economic growth and operational efficiency. He remarked on the company’s efforts to create world-class AI systems, calling this a "golden moment" for innovation.  

Microsoft has been actively expanding its AI infrastructure globally, having recently announced an $80 billion investment in AI data centers this year. Nadella’s visit to India reaffirmed the company’s commitment to building cutting-edge infrastructure and nurturing a skilled workforce, with initiatives such as the "Code; Without Barriers" program, which aims to train 75,000 women developers in India by the end of 2024.  

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