In a landmark move underscoring India’s rise as a global tech powerhouse, Microsoft has unveiled a massive $17.5 billion investment dedicated to accelerating India’s AI-driven growth. The announcement—Microsoft’s largest commitment in Asia—came soon after CEO Satya Nadella’s meeting with Prime Minister Narendra Modi in New Delhi, signalling a deepening alignment between the company’s long-term vision and India’s digital priorities.

“Thank you, PM @narendramodi ji, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing US$17.5B, our largest investment ever in Asia, to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI-first future,” Nadella shared on X, setting the tone for what the company calls its most ambitious India plans yet.

A Meeting That Set the Direction

Described by the Prime Minister as “productive,” the meeting touched on India’s AI roadmap and future readiness. PM Modi emphasised that the country’s youth would “harness the opportunity to innovate and leverage the power of AI for a better planet.” The conversation added momentum to a series of high-level dialogues between India’s leadership and global tech CEOs, including those from Intel and Cognizant.

A Four-Year, Three-Pillar Strategy

Microsoft’s commitment spans 2026 to 2029 and focuses on three pillars—scale, skills, and sovereignty. The investment is intended to strengthen the nation’s digital backbone and support India’s aspiration to establish itself as a “frontier AI nation.”

“As technology becomes a catalyst for inclusive growth and economic transformation, the country is emerging as a frontier AI nation,” Microsoft said in a post on its website. The new pledge adds to the $3 billion investment announced earlier this year, taking Microsoft’s total planned spend in India to over $20 billion by 2030.

A Massive Skilling Push for the Next Digital Workforce

A core part of the investment is Microsoft’s expanded national skilling mission. The company aims to double its existing efforts and empower 20 million people by 2030 with AI training and digital literacy programmes. This includes integrating AI tools into Indian platforms like e-Shram and the National Career Service, potentially supporting more than 310 million informal workers. The move builds on Nadella’s recent remarks about the importance of AI competency in the evolving job market.

Strengthening India’s Data Sovereignty

Recognising the rising importance of data protection, Microsoft will introduce Sovereign Public Cloud and Sovereign Private Cloud services tailored for Indian institutions. These environments will help the public and private sectors build secure, compliant AI systems.

Union IT Minister Ashwini Vaishnaw welcomed the development, noting that as AI reshaped global digital economies, India remained committed to innovation with trust at the centre. “Microsoft’s landmark investment signals India’s rise as a reliable technology partner for the world,” he said.

Deepening Roots in India’s Tech Story

Microsoft’s journey in India began in 1990 with its first office in Hyderabad. Today, the country is home to the tech giant’s largest development centre outside its Redmond headquarters. The company’s upcoming hyperscale data centre—set to go live by mid-2026—will further expand its presence across Chennai, Hyderabad, and Pune.

With this record-breaking investment, Microsoft isn’t just scaling its operations—it’s placing a long-term bet on India’s potential to emerge as the AI capital of the future.