Microsoft marked its 25-year milestone in Hyderabad on Thursday with the inauguration of a new campus in Gachibowli.

Telangana Chief Minister A. Revanth Reddy and IT & Industries Minister D. Sridhar Babu led the ceremony, highlighting the state’s growing prominence in the global technology sector.

The newly opened 1.1 million square-foot, LEED-certified facility will accommodate an additional 2,500 employees. Hyderabad serves as Microsoft’s largest research and development center outside the United States, with over 20,000 professionals employed by the company in India—more than half based in the city.

At the event, Chief Minister Revanth Reddy emphasized Hyderabad’s transformation into a global technology hub. “Hyderabad and Microsoft have progressed together. The city has become a global innovation center, attracting top talent and multinational investments,” he stated.

Microsoft’s expansion plan includes hiring 4,800 more employees, reinforcing Hyderabad’s status as a key destination for technology and artificial intelligence (AI) innovation.

Microsoft announced a collaboration with the Telangana government to provide AI training to 1.2 lakh individuals across the state. Under the ADVANTA(I)GE TELANGANA initiative, Microsoft will introduce AI-focused education in 500 government schools, impacting 50,000 students.

Additional AI upskilling programs include:

• AI-Industry Pro – Training 20,000 professionals in AI applications.

• AI-Govern – Equipping 50,000 government officials with expertise in digital tools, Generative AI, and cybersecurity.

A key component of this partnership is the establishment of an AI Center of Excellence (AICoE), which will develop cloud-based AI infrastructure and house a centralized AI Knowledge Hub. This hub will compile research, case studies, and industry best practices.

Furthering its commitment to Telangana, Microsoft announced a Rs 15,000 crore investment to expand hyperscale AI data centers in the state. This investment positions Hyderabad as a crucial data hub for the company’s global AI and cloud operations.

Microsoft India President Rajiv Kumar underscored the company’s focus on AI-driven innovation. “The new campus at the Microsoft India Development Center (IDC) in Hyderabad reflects our dedication to advancing India’s AI capabilities. The infrastructure will support teams developing next-generation AI solutions,” he said.

A Memorandum of Understanding (MoU) was signed between Microsoft and the Telangana government to formalize these initiatives.

This agreement follows discussions between CM Revanth Reddy and Microsoft CEO Satya Nadella in January 2025, where they committed to modernizing government IT systems, accelerating AI adoption, and strengthening cloud infrastructure.