Microsoft to Continue Heavy AI Investments in India Beyond 2026

Microsoft to Continue Heavy AI Investments in India Beyond 2026

India News : Global tech giant Microsoft has confirmed that it will continue investing in artificial intelligence infrastructure in India even beyond 2026. Senior Microsoft officials stated that the company will keep expanding its cutting-edge data centers and hiring AI engineers as part of its long-term commitment to India’s rapidly growing AI ecosystem.

According to Microsoft India President Puneet Chandok, the company is set to invest nearly $3 billion (₹25,000 crore) in India over the next two years to accelerate AI adoption across industries. A major part of this investment includes the massive data center being built in Hyderabad, which is expected to become operational by June 2026. Once completed, it will be among the largest AI-focused data centers in the region.

Microsoft already operates data centers in Mumbai, Pune, and Chennai, and is jointly developing two Jio-Azure cloud regions in Maharashtra and Gujarat with Reliance Jio.

Chandok emphasized that Microsoft’s AI expansion in India is long-term and continuous, adding that more announcements will follow soon. Global CEO Satya Nadella is scheduled to visit India between December 10 and 12, during which several major AI initiatives are expected to be unveiled.

The AI data-center race in India is intensifying. Recently, Google, in collaboration with Adani Group and Airtel, announced a massive $15 billion investment to establish a 1-GW AI data center in Visakhapatnam.

When asked about competition, Chandok declined to comment but clarified that Microsoft has no plans to reduce workforce in India. The company currently works with 22,000 AI engineers and plans to continue large-scale hiring.

Microsoft believes that AI will not eliminate jobs; instead, repetitive tasks will shift to machines, creating new, high-value roles for humans. At present, Microsoft India has 420 open positions, with nearly 92% requiring AI expertise. The company also provides employees one full day every month dedicated to AI learning.

For FY 2025, Microsoft India reported revenue of ₹28,755 crore and profit of ₹1,245 crore. Through its ongoing partnership with OpenAI, Microsoft continues to strengthen Azure and Copilot services in the Indian market, bringing advanced AI solutions to businesses and developers.

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