Microsoft Commits Record $17.5 Billion Investment to Fuel India’s AI Ambitions

Microsoft Commits Record $17.5 Billion Investment to Fuel India’s AI Ambitions

Microsoft framed the investment by noting that India stands “at a pivotal moment in its AI journey,” determined to lead and emerging as a “frontier AI nation”.

RMN News Business Desk
New Delhi | December 10, 2025

Microsoft CEO Satya Nadella announced the US-based software giant’s largest-ever investment in Asia, committing over US$ 17.5 billion (or Rs 1.5 lakh crore) toward developing Artificial Intelligence (AI) capabilities in India. Following a meeting with Prime Minister Narendra Modi, Nadella stated that the investment is intended to support India’s ambitions and help build the necessary infrastructure, skills, and sovereign capabilities for “India’s AI-first future”.

The newly announced commitment supplements an earlier US$ 3 billion investment aimed at establishing cloud and AI infrastructure in Bengaluru over the next two years. That existing investment includes new data centers and upskilling initiatives. Microsoft confirmed in a press statement that the total investment, nearly US$ 20 billion across four years, will ensure the company achieves its “largest hyperscale presence in India”.

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Prime Minister Modi hailed the move, stating that he was “Happy to see India being the place where Microsoft will make its largest-ever investment in Asia”. He also commented that “When it comes to AI, the world is optimistic about India!”. The Prime Minister expressed confidence that the youth of India would utilize this opportunity to innovate and leverage AI’s power for a better planet.

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… pic.twitter.com/NdFEpWzoyZ

— Satya Nadella (@satyanadella) December 9, 2025

Microsoft framed the investment by noting that India stands “at a pivotal moment in its AI journey,” determined to lead and emerging as a “frontier AI nation”. The company views technology as a catalyst for inclusive growth and economic transformation. This nearly $20 billion commitment underscores India’s position as an “uber-valuable market” for global software behemoths competing to build digital infrastructure.

Microsoft’s commitment follows similar, large-scale investment announcements from other technology giants. Google CEO Sundar Pichai previously shared plans with PM Modi for the US company’s largest-ever investment in India: an artificial intelligence hub in Visakhapatnam, Andhra Pradesh. Google, which partnered with the Adani Group for a data center and AI base there, plans to invest $15 billion over the next five years. Amazon has also invested billions into developing data centers across India.

The government has also maintained a focus on guiding the development of AI, with PM Modi having recently met with Qualcomm CEO Cristiano R Amon to discuss India’s advancements in AI, innovation, and skilling. Furthermore, PM Modi has highlighted India’s role in shaping a global framework for AI, emphasizing the need for “ethical and human-centric AI,” and confirming that his administration is developing a policy on this topic.