In a year when many global tech companies are turning their attention to India’s fast-growing digital sector, Microsoft has made one of the biggest moves. The US-based tech giant has announced a massive investment of $17.5 billion to support India’s AI-driven future. This is Microsoft’s largest investment in Asia so far. The announcement came soon after Microsoft CEO Satya Nadella met Prime Minister Narendra Modi in New Delhi.

Nadella shared on X that he had an “inspiring conversation” with the Prime Minister about India’s AI opportunities. He said Microsoft is committing $17.5 billion to help India build the infrastructure, skills, and capabilities needed to become an AI-first nation.

During their meeting, PM Modi and Nadella discussed India’s priorities in artificial intelligence and how the technology can create new opportunities. Modi said India’s youth would use AI to innovate and make a positive impact on the planet. Nadella’s visit also took place at a time when several global tech leaders, including Intel’s Lip-Bu Tan and Cognizant’s Ravi Kumar S., have been meeting Indian officials.

$17.5 billion over four years

Microsoft explained that this investment will be spread across 2026 to 2029 and will focus on three areas: scale, skills, and sovereignty. The company aims to strengthen India’s cloud and AI infrastructure so the country can emerge as a global AI leader. This new commitment adds to Microsoft’s earlier announcement of $3 billion in January 2025, bringing the total planned investment in India to over $20 billion by 2030.

Boosting AI skills in India

Microsoft says the next phase of India’s digital growth will be about building skills. The company plans to train 20 million people by 2030, helping them understand and use AI tools. This includes integrating AI into national platforms like e-Shram and the National Career Service, which could help more than 310 million informal workers find better opportunities.

Building India-focused sovereign clouds

With data privacy becoming more important, Microsoft will also introduce Sovereign Public Cloud and Sovereign Private Cloud services designed specially for India. These will allow government bodies and businesses to create secure and compliant environments to use AI safely.

Union IT Minister Ashwini Vaishnaw welcomed Microsoft’s move, saying it shows that India is becoming a trusted technology partner for the world.

Microsoft’s connection with India began in 1990 when it opened its first office in Hyderabad. Today, India is home to the company’s largest development centre outside its US headquarters, with teams in Hyderabad, Bengaluru, and Noida working on products like Azure, Office, and Windows. The company’s new hyperscale data centre is expected to start operations by mid-2026.

India’s AI future

The meeting between Nadella and Modi highlights a growing partnership between India’s national tech goals and Microsoft’s global strategy. With this huge investment, Microsoft is not just expanding its business—it is placing a major bet on India becoming one of the leading AI hubs of the world.