Microsoft unveils USD23bn in new AI investments with big focus on India

BENGALURU: Microsoft on Tuesday unveiled USD23 billion in new artificial intelligence investments, with the bulk earmarked for India as the US tech giant deepens its bet on one of the world’s fastest-growing digital markets.

CEO Satya Nadella said Microsoft would spend USD17.5 billion in India in its largest investment in Asia, building on a USD3 billion commitment announced earlier this year. The four-year spending plan starts in 2026 and would give Microsoft the largest cloud-computing presence in India. With around a billion internet users and deep tech talent, India has become a key destination for US tech giants, which are investing billions of dollars to build AI infrastructure.

Data centers are seen as the South Asian country’s best shot at breaking into the boom, given that it has limited chip-manufacturing capabilities. Google said in October it would invest USD15 billion over five years to build an AI data center in the southern state of Andhra Pradesh, its biggest commitment in the world’s most populous nation. The Microsoft spending will “help build the infrastructure, skills, and sovereign capabilities needed for India’s AI first future,” Nadella said in a post on X, sharing a photo of himself with Indian Prime Minister Narendra Modi.