The $17.5 billion investment targets India’s 1 billion internet users to drive Azure and Copilot 365 adoption.
Microsoft will open its largest data center in India by mid-2026, part of a $17.5 billion investment to expand cloud and AI services in the country. The facility in Hyderabad aims to meet rising demand for Azure and the $30-a-month Copilot 365 AI assistant.
The company previously pledged $3 billion in early 2025, adding to its largest Asian outlay. India’s 1 billion internet users and tech talent pool make it a key market for AI growth, competing with Alphabet and Amazon.
Major IT firms like Infosys and Tata Consultancy Services have already secured about 50,000 Copilot licenses each, signaling strong enterprise adoption.