Microsoft Announces Record $17.5 Billion Investment in India to Boost AI Infrastructure, Skills, and Sovereign Capabilities

Microsoft has unveiled its largest investment plan in Asia, pledging $17.5 billion in India over the next four years. This investment will advance country’s artificial intelligence capabilities. The announcement came after Microsoft CEO Satya Nadella met Prime Minister Narendra Modi to discuss ways to support India’s AI ambitions.

Microsoft’s investment will strengthen India’s infrastructure, develop skills, and enhance AI capabilities in the country.

Largest Investment in Asia

This is Microsoft’s largest investment in Asia that will cover in the span of 2026 to 2029, focusing on AI adoption across India at a population scale. , Microsoft’s $17.5 billion investment is built on the earlier announcement from the company in January 2025 about investing a $3 billion in India. This showcases tech giant’s growing confidence in India as a hub for technological advancements.

The blog post further mentions that how Microsoft is emphasizing that this funding will create better infrastructure and workforce needed to support large-scale AI applications and innovations.

Government Welcomes Microsoft’s Initiative

The initiative by Microsoft is praised by Prime Minister Narendra Modi and he calls it a significant milestone in India’s AI journey. He noted that India is growing toward AI enhancement and country’s potential in artificial intelligence is rising. He also expressed hope that the nation’s youth will leverage this opportunity to innovate and bring new inventions and better future.

The partnership between India and Microsoft is also highlighted by Union Electronics and Information Technology Minister Ashwini Vaishnaw. He emphasized India’s role in digital and AI infrastructure.

When talking to Nadella, Vaishnaw also provided several important areas of cooperation, including benefit the people, frontier technologies, and data sovereignty.