Microsoft Chairman and CEO Satya Nadella announced a significant $3 billion investment in India over the next two years to bolster cloud and AI infrastructure, promote skilling initiatives, and accelerate AI adoption.

The announcement, made during Nadella's visit to India, underscores Microsoft’s commitment to empowering India’s digital transformation and aligns with Prime Minister Narendra Modi's vision of a developed India (Viksit Bharat) by 2047.

The investment includes the establishment of new datacenters and aims to create a scalable AI computing ecosystem that will cater to the needs of India’s burgeoning AI startups and research community. Microsoft, which already has three datacenter regions in India, plans to launch a fourth region by 2026.

Speaking on the initiative, Nadella said: “India is rapidly becoming a leader in AI innovation, unlocking new opportunities across the country. The investments in infrastructure and skilling we are announcing today reaffirm our commitment to making India AI-first and ensuring people and organizations across the country benefit broadly.”

Puneet Chandok, President of Microsoft India and South Asia, highlighted the transformative potential of AI, stating: “In the last year, Microsoft has been a co-pilot in making AI a reality in India, impacting sectors from classrooms to commerce and finance to agriculture. Today’s announcement strengthens our belief in India’s potential and our resolve to equip the country with the resources and future-ready skills needed to excel in the global marketplace.”

Microsoft’s ADVANTA(I)GE India program has already trained 2.4 million individuals in AI skills, surpassing its original target ahead of schedule. The next phase of the program aims to equip 10 million Indians with AI skills by 2030, with a focus on inclusivity—65% of participants so far have been women, and 74% hail from tier II and tier III cities.

Minister of State for Skill Development and Entrepreneurship, Shri Jayant Chaudhary, lauded the initiative, stating: “Through the ‘AI for India’ mission, we aim to empower citizens with cutting-edge AI skills, driving innovation, creating jobs, and bridging the digital divide. Collaborations with global leaders like Microsoft are pivotal in shaping an AI-ready India poised for digital leadership.”

Microsoft Research (MSR) Lab announced the launch of an AI Innovation Network to deepen collaboration with startups and researchers. The initiative will focus on transitioning AI research into real-world applications. Current projects include partnerships with companies like Physics Wallah on personalized learning tools and collaborations on Indic language models and reinforcement learning.

Prateek Maheshwari, co-founder of Physics Wallah, said: “Our collaboration with Microsoft Research is a step towards making education more accessible, personalized, and impactful, empowering students meaningfully.”

Microsoft also signed an AI Memorandum of Understanding (MoU) with SaaSBoomi, India’s premier B2B startup community. The partnership aims to accelerate India’s AI and SaaS ecosystem by fostering innovation, upskilling over 150,000 startup employees, and supporting over 5,000 startups in tier II cities. The collaboration is expected to create 200,000 new jobs and attract $1.5 billion in venture capital funding.

Microsoft reaffirmed its commitment to sustainability, announcing that its new datacenters in India will operate with zero water usage for cooling and rely on renewable energy through partnerships with Amplus and ReNew. The renewable energy initiatives also include a $15 million community fund to support women’s livelihoods, rural electrification, environmental remediation, and water quality improvement.

The company’s efforts align with its broader goals of becoming carbon-negative, water-positive, and zero-waste by 2030, while empowering others to adopt sustainable practices.

As India embraces AI at an unprecedented pace, Nadella emphasized the importance of collaboration and inclusivity in shaping the country’s digital future. “Our mission is to empower every person and organization on the planet to achieve more,” he said, underscoring Microsoft’s role in driving innovation and digital transformation globally.

Through strategic investments, partnerships, and skilling initiatives, Microsoft is positioning itself as a key enabler of India’s journey toward becoming a global leader in AI innovation and sustainable development. (ILKHA)