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Nadella said that Microsoft was committing the investments to
help India build the “infrastructure, skills and sovereign
capabilities” needed for its AI future.
The announcement underscores the growing global competition
among major technology companies to expand in India, which has
become one of the world’s fastest-growing digital markets.
In October, Google said it will invest $15 billion in India over
the next five years to establish its first AI hub in the
country. Located in the southern city of Visakhapatnam, the hub
will be one of Google’s largest globally.
Nadella is in India on a three-day trip that includes
discussions with policymakers, as well as participation in
AI-focused events in the country's tech hub, Bengaluru, and
financial capital, Mumbai.
India has set ambitious targets to become a leading global hub
for AI and semiconductor manufacturing. The government has
introduced financial incentives aimed at attracting global
chipmakers and major technology companies to strengthen the
country’s innovation ecosystem, boost jobs and reduce dependence
on imported technologies.
“When it comes to AI, the world is optimistic about India,” Modi
said on X after meeting with Nadella.
Microsoft’s latest India investment plan tops its earlier
announcement this year of investing $3 billion in building cloud
and AI infrastructure, as well as new data centers and skilling
the workforce over the next two years.
The company, which has operated in India for more than three
decades, employs more than 22,000 people in the country and has
been expanding cloud and data center capacity to support
advanced computing needs.
Microsoft said in a statement that it hopes to scale up its
ongoing operations across India. It plans to have its largest
hyperscale presence in the country with a new data center going
live in mid-2026.
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