Microsoft has launched its largest data centre in India, in Hyderabad, strengthening its position in the country’s growing AI market. The new India South Central facility brings Microsoft’s total cloud regions in India to four, alongside existing centres in Pune, Chennai and Mumbai. Early users include Adani Group and HDFC Bank.
Microsoft has committed around $20.5 billion to expanding its operations in India. The investment reflects the country’s large internet user base and strong pool of technology talent. Microsoft’s Azure cloud business has recorded double-digit revenue growth in India over the past two years.
The company also operates two additional data centres in India through a partnership with Reliance Industries chairman Mukesh Ambani’s Jio. Microsoft India President Puneet Chandok said trusted infrastructure close to where data is stored, teams operate and decisions are made is essential for creating value with AI.
The expansion comes as Microsoft faces growing competition from Alphabet and Amazon. Both companies are investing heavily in India’s data centre capacity to capture the country’s expanding AI market.
However, India’s data centre boom has also raised environmental concerns. Environmentalists have accused authorities of fast-tracking a planned Google data centre hub without adequately considering potential risks to water supplies and wildlife. The government has rejected those allegations.
