Satya Nadella to pump in $17.5 billion into India's AI market

Microsoft has announced close to $23 billion in new global artificial intelligence investments, directing a significant share toward India as it strengthens its position in one of the fastest-advancing digital economies. The company will allocate US$17.5 billion to India, marking its largest investment in Asia, building on an earlier US$3 billion commitment.

The four-year plan, beginning in 2026, is expected to give Microsoft the most extensive cloud-computing presence in the country, with the first new data centre scheduled to go live in mid-2026.

India’s digital ecosystem, supported by nearly a billion internet users and a deep pool of engineering talent, has become a priority market for global technology companies. With limited chip-manufacturing capabilities, data centres are emerging as the country’s strongest entry point into the accelerating AI economy. Microsoft’s investment aligns with this shift and aims to advance local infrastructure, skills and sovereign AI capabilities.

The announcement comes as CEO Satya Nadella visits New Delhi, Bengaluru and Mumbai for a series of Microsoft AI conferences, underscoring India’s role in the company’s long-term strategy. Other technology giants are also expanding their commitments, with Google recently outlining a US$15 billion plan to develop an AI data centre in Andhra Pradesh.

Thank you, PM @narendramodi ji, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing US$17.5B—our largest investment ever in Asia—to help build the infrastructure, skills, and sovereign capabilities needed for… pic.twitter.com/NdFEpWzoyZ

— Satya Nadella (@satyanadella) December 9, 2025

Alongside its India focus, Microsoft confirmed more than C$7.5 billion in new investments in Canada over the next two years, part of a broader C$19 billion plan through 2027. The expansion will bolster Azure Local cloud capacity, with new infrastructure expected to come online in the second half of 2026. The company is also partnering with Canadian AI firm Cohere to integrate advanced models into its Azure platform.

These moves come as major technology players face increasing scrutiny to demonstrate clear commercial returns from large-scale AI spending, even as demand continues to surge.