Published in Microsoft Azure

Microsoft Plans $17.5bn AI Infrastructure Investment in India

Dec 09, 2025 | Posted by Abdul-Rahman Oladimeji

Microsoft revealed today that it would be spending $17.5 billion on AI infrastructure in India during the next four years starting in 2026, as well as a $5.42bn pledge to Canada in the next two years. 

A post on X by Microsoft CEO Satya Nadella said: "Thank you, PM Narendra Modi, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing $17.5bn - our largest investment ever in Asia - to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI-first future.

Further details about the plans for India were not stated, but the company has, in recent months, revealed that it would be launching its "India South Central" region, the most recent of many, based in Hyderabad in 2026. Plans for the Hyderabad region were revealed in 2022.


Meanwhile, Microsoft has also revealed plans to spend CA$7.5bn (US$5.42bn) in Canada over the next two years, aiming to bring new cloud capacity online in the second half of 2026. This is part of the previously announced commitment of CA$19bn (US$13.73bn) in investment between 2023 and 2027.

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