Satya Nadella commits $17.5 billion investment to accelerate India’s AI ecosystem

Microsoft has unveiled nearly US$23 billion in new global AI investments, dedicating a substantial portion to India as it strengthens its foothold in one of the world’s fastest-growing digital markets. Of this, US$17.5 billion will be directed to India—its largest investment in Asia—building on an earlier US$3 billion commitment.

The four-year plan, starting in 2026, is set to give Microsoft the most expansive cloud-computing footprint in the country, with the first new data centre slated to go live by mid-2026. With close to a billion internet users and a vast pool of engineering talent, India’s digital landscape has become a strategic priority for major global tech firms. And as the country works to overcome limited chip-manufacturing capacity, data centres are emerging as its strongest gateway into the fast-accelerating AI economy. Microsoft’s investment underscores this shift, aiming to scale local infrastructure, talent development and sovereign AI capabilities.

The announcement coincides with CEO Satya Nadella’s visit to New Delhi, Bengaluru and Mumbai for a series of Microsoft AI conferences, reaffirming India’s central role in the company’s long-term plans. The move also comes amid expanded commitments from other tech leaders—Google recently detailed a US$15 billion investment to build an AI data centre in Andhra Pradesh.

Beyond India, Microsoft also confirmed over C$7.5 billion in new investments for Canada over the next two years, part of a broader C$19 billion roadmap through 2027. The expansion will enhance Azure Local cloud capacity, with new infrastructure expected to come online in the latter half of 2026. Microsoft is further deepening its collaboration with Canadian AI company Cohere to bring advanced models to its Azure platform.

These developments arrive at a time when major technology companies are under mounting pressure to show tangible commercial returns from massive AI outlays, even as global demand continues to surge.