Microsoft is also investing heavily in AI, recently the country head of the company has informed that Microsoft’s largest data center in India is going to open by mid-2026. The company is spending heavily to strengthen its position in one of the world’s largest markets for artificial intelligence services.
There is bumper demand for these things in India
According to the Economic Times, Microsoft India and South Asia President Puneet Chandhok told Reuters during a conversation that there is a huge demand for Azure Cloud Services and Copilot 365 AI Assistant priced at $ 30 per month in the country. Like competitors Alphabet and Amazon, Microsoft also sees India as a potentially lucrative market for AI, as it has more than 1 billion internet users and deep tech talent.
Big investment was announced at the end of 2025
It is very important to tap such a market because the company wants to prove to investors that its big bet on AI will be profitable. The company had announced late last year that it would invest $17.5 billion (about Rs 1,45,000 crore) in India, this is the company’s largest investment in Asia. Apart from this, $3 billion (about Rs 24,900 crore) was promised by the beginning of 2025. This includes a new data center in the tech hub of Hyderabad, where Microsoft already has a significant presence.
Regarding setting up the company’s data center, Microsoft India and South Asia President Puneet Chandhok informed that we are starting it at the fastest pace. He also said that this data center in Hyderabad will be the biggest facility of the company, but he has not told its exact capacity.
The new capacity will serve the growing customer base for AI services in India. Microsoft’s Copilot customers include IT majors Infosys, Cognizant and Tata Consultancy Services, each of which has about 50,000 licenses.
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