Where Will Microsoft Invest Its ₹1.5 Lakh Crore in India?
Microsoft plans to invest ₹1.5 lakh crore in India between 2026 and 2029. From AI and cloud infrastructure to new data centres in Hyderabad and beyond, here’s where the investment may go.
Where Will Microsoft Invest Its ₹1.5 Lakh Crore in India? AI, Cloud and Data Centres in Focus

Microsoft CEO Satya Nadella announced a huge investment of $17.5 billion, or about Rs 1.5 lakh crore, in India after meeting Prime Minister Narendra Modi on December 9. This is Microsoft's largest investment in Asia. This investment will be made over a four-year period from 2026 to 2029. This has started a debate about where this investment will be made. Developing countries have started approaching Microsoft with various types of concessions.
Microsoft's focus is on the AI sector
There will be a lot of investment in cloud, AI infrastructure, expansion of data centers, and construction of hyperscale cloud infrastructure. A new data center region in Hyderabad will start in mid-2026. Existing centers will be expanded in Chennai, Hyderabad, and Pune. Sustainable technology will be focused on renewable energy, waterless cooling. Skills development: 20 million Indians will be trained in AI skills by 2030.
Visakhapatnam could be the front runner!
Google is setting up the AI Hub in Visakhapatnam for the first time in the country. The AP government has announced an attractive industrial policy for corporate companies. Not only that, it is coming forward to provide full support and cooperation, but at the same time, Visakhapatnam's geographical attractiveness is also coming into play. That is why Microsoft is also expected to choose Visakhapatnam.
Chances to invest in multiple places separately, rather than all in one place
There are chances that Microsoft will invest Rs 1.5 lakh crore in multiple places instead of just one. There is a possibility that they will try to strengthen their base in multiple cities. AP is also likely to be on that list, but it is unlikely that they will invest the entire amount in just one place.

