New Delhi: Prime Minister Shri Narendra Modi and Microsoft Chairman and CEO Mr. Satya Nadella held a productive meeting today, following which Microsoft announced its largest-ever investment in Asia, committing $17.5 billion over four years (Calendar Years 2026 to 2029) to advance India’s Cloud and Artificial Intelligence (AI) infrastructure.
This substantial pledge is in addition to the $3 billion investment announced earlier this year, which the company is on track to spend by the end of CY2026.
Shri Nadella posted on social media following the meeting, stating, “Thank you, PM @narendramodi ji, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing US$17.5B—our largest investment ever in Asia—to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI first future.”
The Prime Minister responded with optimism, noting, “When it comes to AI, the world is optimistic about India! Had a very productive discussion with Shri Nadella. Happy to see India being the place where Microsoft will make its largest-ever investment in Asia. The youth of India will harness this opportunity to innovate and leverage the power of AI for a better planet.”
The $17.5 billion investment is structured around three core pillars—scale, skills, and sovereignty—and is designed to align with the Prime Minister’s vision for building a comprehensive ecosystem that drives AI innovation and access across the nation.
The investment will be channeled primarily into three strategic areas to ensure India’s readiness for an AI-first future:
A significant portion of the funds is dedicated to expanding Cloud and AI computing infrastructure. This includes building new advanced data centres. Microsoft confirmed it will have the largest hyperscale presence in India, with its new data centre going live in mid-2026. This expansion will provide the scalable computing ecosystem needed to meet the growing demands of India’s rapidly expanding AI startups and research community.
Microsoft is doubling its skilling commitment in India, with an ambitious goal to train 20 million people in AI skills by 2030. This initiative aims to build a robust talent pipeline, ensuring the Indian workforce is equipped to capitalize on the new opportunities presented by the AI revolution.
The commitment will support the development of secure, sovereign data systems and sovereign capabilities. This focus aims to help India transition from its successful digital public infrastructure to a state-of-the-art AI public infrastructure, ensuring technology remains a catalyst for inclusive growth and economic transformation across the country.