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

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Microsoft Chairman and CEO Satya Nadella announced an investment of $3 billion to expand cloud and artificial intelligence infrastructure in India over the next two years. Nadella’s announcement, made during the Microsoft AI Tour, underscores the company’s commitment to making India an AI-first country and helping grow its digital economy.

“India is quickly becoming a leader in Innovation in Artificial Intelligenceopening up new opportunities across the country.” Nadella said. “The investments in infrastructure and skilling we are announcing today reaffirm our commitment to making India an AI priority and will help deliver widespread benefits to people and organizations across the country.”

This AI investment aims to scale Microsoft’s cloud capabilities and support India’s growing AI-based startups and research initiatives. The tech company plans to build new data centers, with a fourth region coming online in 2026, improving infrastructure for the country’s growing digital economy.

Training AI skills for 10 million Indian citizens

investments in artificial intelligence This announcement comes with a commitment to train 10 million people in artificial intelligence skills by 2030 as part of Microsoft’s ADVANTA(I)GE India initiative. In 2024, the program trained 2.4 million people with a focus on inclusivity: 65 percent of participants were women and a significant proportion came from tier-2 and tier-3 cities. Puneet Chandhok, president of Microsoft India and South Asia, emphasized the company’s mission to take AI “from boardrooms to classrooms, from commerce to communities and finance to farmers.”

Microsoft also unveiled the AI ​​Innovation Network, led by its Microsoft Research Lab (MSR), to promote collaboration among researchers, startups and enterprises. The network is designed to speed up transition of artificial intelligence research into real solutionswith noteworthy partnerships such as Physics Wallah, specializing in personalized education technologies.

Additionally, the new partnership with SaaSBoomi will support 5,000 startups and 10,000 entrepreneurs, especially in tier-2 cities. Over the next five years, this collaboration aims to create 200,000 jobs, attract $1.5 billion in venture capital funding and contribute to India’s trillion-dollar SaaS economy.

Microsoft’s efforts to enhance skills align with India’s mission to bridge the digital divide and create employment opportunities.

“Collaboration with global leaders such as Microsoft and similar companies is critical in this transformation,” said India’s Minister for Skill Development and Entrepreneurship Shri Jayant Chaudhary, praising the collaboration. “By equipping our workforce, especially women and youth, with advanced skills, we are building Artificial Intelligence Support India is poised for digital leadership and sustainable economic growth.”

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