$17.5 billion for India’s AI race – Microsoft commits largest-ever investment in Asia

Tech giant Microsoft has committed to invest $17.5 billion in India to help build the infrastructure, skills and sovereign capabilities for India’s future in artificial intelligence. Satya Nadella, the chairman and CEO of Microsoft revealed this plan on X after meeting with prime minister Narendra Modi in Delhi earlier today.

“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 wrote on X.

Prime minister Narendra Modi responded to Nadella’s post saying, “When it comes to AI, the world is optimistic about India!”

“Had a very productive discussion with Mr. Satya Nadella. Happy to see India being the place where Microsoft will make its largest-ever investment in Asia. The youth of India will harness this opportunity to innovate and leverage the power of AI for a better planet,” PM Modi added.

The $17.5 billion investment will be made over four years (CY 2026 to 2029), and this investment builds on the $3 billion investment that was announced earlier this year, Microsoft is on track to spend by the end of CY 2026, the company said in a statement.

“As AI reshapes the digital economy, India remains committed to innovation anchored in trust and sovereignty. Microsoft’s landmark investment signals India’s rise as a reliable technology partner for the world. This partnership will set new benchmarks and drive the country’s leap from digital public infrastructure to AI public infrastructure," said Ashwini Vaishnaw, union minister of electronics and information technology.

"Microsoft has been part of India’s fabric for more than three decades. As the nation moves confidently into its AI-first future, we are proud to stand as a trusted partner in advancing the infrastructure, innovation and opportunity that can power a billion dreams," said Puneet Chandok, president, Microsoft India and South Asia.

"Building on the US$3 billion investment announced in January 2025, our new US$17.5 billion commitment and deep partnership across India’s technology ecosystem are focused on turning India’s AI ambition into impact for every citizen. This transformation is anchored on three pillars: hyperscale infrastructure to run AI at scale, sovereign-ready solutions that ensure trust, and skilling programs that empower every Indian to not just join the future but shape it,” he added.

The company further stated that this new investment will continue to scale its cloud and AI infrastructure, skilling initiatives and ongoing operations across India. This includes Microsoft's workforce of more than 22,000 employees across Bengaluru, Hyderabad, Pune, Gurugram, Noida and other cities