Microsoft to Invest $17.5 Billion in India Data Centers
Microsoft will spend $17.5 billion to expand data centers and cloud infrastructure in India, focusing on locally hosted services and long-term operations.
Microsoft will invest $17.5 billion in India, CEO Satya Nadella said on Tuesday on X. The commitment focuses on expanding the company’s data capacity and cloud infrastructure inside the country.
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
India is seeing rapid demand for locally hosted computing systems as companies shift software and storage to cloud services and follow domestic data rules. The new spending will support:
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Construction of additional data centers for Azure and enterprise clients
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Upgrades to networks and on-premise hardware linked to Microsoft services
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Facilities built to match India’s data security and compliance requirements
Microsoft has not published the rollout timeline or listed which regions will receive the new build-outs. Analysts expect the projects to involve Indian contractors and technology providers once work begins.
The company has been active in India for over 30 years. This planned investment is one of its largest financial allocations in the country and signals a long-term expansion of core operations rather than short-term upgrades.
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