In a major boost to India’s fast-expanding artificial intelligence and cloud infrastructure ecosystem, Microsoft is set to operationalise its largest data centre in the country by mid-2026, Reuters reported on Tuesday.<\/p>\n
According to Puneet Chandok, President of Microsoft India and South Asia, the facility is coming up in Hyderabad and will be Microsoft’s largest data centre in India.<\/p>\n
\u201cThere’s massive demand for Azure cloud services and the company’s $30-per-month Copilot 365 AI assistant in India,\u201d Chandok told Reuters.<\/p>\n
ALSO READ: PepsiCo India To Invest Rs 5,700 Crore By 2030 On Capacity Expansion<\/a><\/p>\n The development comes as Microsoft sharpens its AI push in one of the world’s fastest-growing digital markets, banking on India’s vast internet user base and deep pool of technology talent.\u00a0<\/p>\n Rivals Alphabet and Amazon are also expanding aggressively in the country’s AI and cloud ecosystem.<\/p>\n Microsoft had announced late last year that it would invest $17.5 billion in India \u2014 its biggest investment in Asia \u2014 in addition to the $3 billion commitment made earlier in 2025.\u00a0<\/p>\n A major portion of the investment is being directed toward expanding data centre infrastructure, including the Hyderabad facility.<\/p>\n \u201cWe are the ones who are bringing this to life quickly, the fastest out of the gates,\u201d Chandok said while referring to Microsoft’s data centre expansion plans.\u00a0<\/p>\n However, he did not disclose the exact capacity of the upcoming facility.<\/p>\n According to the report, the additional infrastructure will support rising demand for Copilot services among major Indian IT companies, including Infosys, Cognizant and Tata Consultancy Services, each of which reportedly holds around 50,000 Copilot licences.<\/p>\n ALSO READ: Maharashtra Signs MoUs Of Rs 6.5 Lakh Crore For Nuclear Energy Projects; Over 1.2 Lakh Jobs Expected<\/a><\/p>\n Chandok also highlighted that several AI features being rolled out globally by Microsoft are being developed in India, where the company employs more than 22,000 people across multiple cities.<\/p>\n He acknowledged that hiring skilled AI professionals is becoming increasingly challenging amid soaring global demand.<\/p>\n \u201cThe challenges in India are the same as everywhere else in the world,\u201d Chandok said, describing the situation as a growing \u201cwar for talent.\u201d<\/p>\n \n Essential Business<\/a> Intelligence,
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