New Delhi, India – Microsoft has upgraded its Indian cloud infrastructure to support advanced AI workloads and named its newest datacentre region in Hyderabad, India South Central, as a strategic hub for Asia and the Global South.
According to Puneet Chandok, President of Microsoft India and South Asia, all of the company’s datacentre regions across India are now AI-enabled. Chandok said the regions are built with AI-capable hardware, high-efficiency cooling systems and the platform foundation required to host and run advanced AI workloads.
India South Central, now live, features a resilient three-zone architecture designed for sustained expansion. Microsoft said additional Azure and AI services are planned for the region as demand grows.
As further supported services roll out, organisations will reportedly be able to deploy eligible sensitive workloads in India using controls aimed at addressing security, compliance and sovereignty requirements. The region also expands Microsoft’s Sovereign Public Cloud foundation in the country, offering local capacity, data residency options and Availability Zones.
Microsoft said its India cloud regions provide capabilities aligned with guidelines from the Ministry of Electronics and Information Technology (MeitY), designed to help customers navigate requirements under India’s Digital Personal Data Protection (DPDP) framework, as well as sector-specific expectations from the Reserve Bank of India (RBI) and CERT-In. The company noted that customers remain responsible for determining which requirements apply to their own organisations and workloads.
The new region marks a significant step in Microsoft’s US$20.5 billion commitment to India, converting the investment into operational infrastructure for the country’s cloud and AI future, the company said. Several enterprises and critical infrastructure organisations, including Adani Group, Bajaj Finserv, HDFC Bank and PB Pay, have already signed up to use the new region.
A study by Boston Consulting Group (BCG), cited by Microsoft, estimates that India’s datacentre buildout could catalyse a wider economic flywheel and generate between US$140 billion and US$200 billion in economic output for the country through 2030. Microsoft holds the largest hyperscale cloud presence in India, a position the company says continues to meaningfully contribute to the nation’s economic growth.
Speaking at the event, Shri Jitin Prasada, Hon’ble Minister of State for Commerce and Industry, and Electronics & Information Technology, said, “India’s ambition is to be an AI-first nation. The launch of Microsoft’s India South Central datacentre region strengthens the digital infrastructure needed to support that ambition.”
“As we advance the IndiaAI Mission, investments such as these expand national AI capability, accelerate innovation, and enable developers, enterprises, and public institutions to build and deploy AI with confidence. With its talent, entrepreneurial energy, and digital public infrastructure, India is well-positioned to lead AI adoption at scale and contribute innovations that benefit people in India and around the world,” Prasada further elaborated.
On the other hand, Chandok added, “India heard our commitment. Today, India can see it — built, live and running. India South Central is our fourth cloud region in the country, built for advanced AI workloads and a strategic hub for Asia and the Global South.”
“It is where our $20.5 billion investment becomes operational infrastructure, with leading Indian enterprises already running on it. But compute alone does not make a nation AI-ready. Capability does — the ability to take AI from pilot to production on platforms that are sovereign-ready, secure and sustainable, in a region cooled with effectively zero water,” Chandok said.
“That is why we have already equipped more than 10 million Indians with AI skills, on the way to 20 million by 2030. India has the talent and the ambition. Now it has the infrastructure to build the next generation of Frontier Firms — and we are building alongside it,” Chandok concluded.
Brad Smith, Vice Chair and President of Microsoft also expressed his comments regarding this milestone through a video message.
Beyond the datacentre itself, Microsoft is also investing in supporting digital infrastructure. The company is a consortium partner in the planned India-Southeast Asia (I-2SEA) submarine cable system, a 3,600-kilometre subsea corridor linking India, Malaysia and Singapore, with dual landings at Machilipatnam and South Chennai.
The cable system is targeted to be ready for service in 2029, and is expected to strengthen regional connectivity and network resilience to support growing AI and cloud demand.
On the skilling front, Microsoft Elevate India has equipped more than 10 million Indians with AI skills, moving towards the company’s commitment to skill 20 million people by 2030. Around 25 percent of learners have progressed beyond the foundational AI course to gain credentials for further learning pathways, Microsoft said.
The company is also running a Data Centre Academy, a 600-hour industry-aligned skilling programme delivered in collaboration with Young India Skills University (YISU) under the Government of Telangana, which trains students in datacentre operations and infrastructure management.
On sustainability, Microsoft said India South Central operates on high-efficiency mechanical cooling that delivers effectively zero water use, in line with the company’s global commitment to become carbon negative, water positive and zero waste by 2030.
Through its Datacentre Community Pledge, Microsoft is also working with local partners in Hyderabad on groundwater recharge, rainwater harvesting and watershed resilience, including an Elikatta groundwater-recharge programme that had added around 5 million litres of recharge capacity by June 2026.
