By the middle of 2026, Microsoft plans to open its biggest data center in India as part of its accelerated cloud and artificial intelligence expansion strategy. The planned Hyderabad location is a component of Microsoft’s larger investment initiative to bolster its position in one of the fastest-growing AI industries globally.
The demand for Azure cloud services and the company’s AI-powered Copilot 365 assistant is growing significantly throughout India, according to Microsoft India and South Asia President Puneet Chandok. Key enterprise users of Copilot services include major Indian IT companies like Infosys, Cognizant, and Tata Consultancy Services.
In addition to a prior commitment of US$3 billion, the business has announced investments totaling US$17.5 billion in India, which is its largest investment in Asia. Microsoft presently employs more than 22,000 people in India, and the company claims that the increasing demand for AI has made it more difficult to find qualified technological expertise worldwide.
Source – The Economic Times
