Google and Microsoft Expand AI Footprint in Telangana with Major Investments and Partnerships

Google and Microsoft expand footprint in Telangana with new investments

Tech giant Google on Thursday said it has entered into a strategic collaboration with the Government of Telangana to set up an AI Accelerator in Hyderabad that aims to support AI Startups and accelerate the development of AI solutions. "Google has announced today a strategic collaboration with the government of Telangana to set up an AI Accelerator in Hyderabad that aims to support AI startups and accelerate development of AI solutions across sectors including agriculture, mobility, education, sustainability and governance. An MoU was signed at T-Hub in the presence of Hon'ble Chief Minister and Hon'ble IT and Industries Minister," the state government said. The announcement came close on the heels of the inauguration of a new 11 lakh square feet facility for Microsoft in the city by Chief Minister A Revanth Reddy and Minister for IT & Industries. The facility will house 2,500 additional employees and is already Microsoft's largest R&D hub outside US Headquarters. "Hyderabad and Microsoft have grown together, and as a proud representative of this state, I can say with certainty this is just the beginning. The world looks at Hyderabad today as a technology powerhouse, a city that nurtures innovation and attracts global talent. And with partners like Microsoft, the future is even brighter," CM Reddy said. The state government said that Microsoft employs over 20,000 professionals in India, over half of which work in Hyderabad. With the launch of the new building, Microsoft plans to hire another 4,800 employees. "This expansion will provide state-of-the-art infrastructure to our teams, enabling them to innovate and develop next-generation AI products. We look forward to our partnership to accelerate digital transformation and AI skilling opportunities across the state," Rajiv Kumar, Managing Director and President, Microsoft India Development Centre said. Microsoft also announced another initiative in partnership with Govt of Telangana to impart AI training to over 1.2 lakh persons in the state. Under the first program ADVANTA(I)GE TELANGANA, Microsoft is launching an AI Foundations Academy to introduce AI education to 500 government schools benefiting 50,000 students. Additionally, the AI-Industry Pro program will upskill 20,000 industry professionals across Telangana. The third program AI-Govern initiative will further train 50,000 government officials in critical areas such as digital productivity, generative AI, and cybersecurity. Also, the government said Microsoft will establish and operate an AI CoE in collaboration with the Government of Telangana and other stakeholders. This CoE will establish cloud-based infrastructure for AI development, including a centralized AI Knowledge Hub. "This repository would compile research, case studies, and best practices benefiting thousands of employees across the state. To support the growth of AI, Microsoft has further announced doubling of its investments in hyperscale AI data centers in the state with an additional investment of Rs 15,000 crore in the coming years. This will make Hyderabad region one of largest data hubs of Microsoft globally," the government added.

Google Inks AI Accelerator Pact With Telangana After Microsoft Launches R&D Hub

Telangana continues to attract significant tech investments, with AWS committing Rs 60,000 crore and other companies pledging Rs 20,000 crore for data centres, as the state develops its 200-acre AI City project Google has entered into a strategic agreement with the Telangana government to set up an AI accelerator in Hyderabad to support startups and serve sectors like agriculture, mobility, education, sustainability and governance. "An MoU was signed at the IT-Hub in presence of the chief minister and IT and industries minister," the government said. The move from Google follows its fellow Big Tech peer Microsoft rolling out an 11 lakh sq ft facility in the city. CM Reddy and the IT minister attended the inauguration of the Microsoft unit, which is its largest R&D hub outside the US headquarters and will employ 2,500 additional employees. "Hyderabad and Microsoft have grown together, and as a proud representative of this state, I can say with certainty this is just the beginning. The world looks at Hyderabad today as a technology powerhouse, a city that nurtures innovation and attracts global talent," the Economic Times quoted CM Reddy as saying. Microsoft employs more than 20,000 professionals in India, with more than half of them based in Hyderabad. The company plans to hire 4,800 more with the expansion going on stream. "It will enable our teams to innovate and develop next-generation AI products," Rajiv Kumar, managing director and president of Microsoft India Development Centre, said. The company announced three training initiatives in partnership with the Telangana government. The ADVANTA(I)GE TELANGANA programme will introduce AI education to 50,000 students across 500 government schools. The AI-Industry Pro programme aims to upskill 20,000 industry professionals, while the AI-Govern initiative will train 50,000 government officials in digital productivity, generative AI and cybersecurity. Microsoft also plans an AI centre of excellence in collaboration with the government, featuring cloud infrastructure and a centralised AI knowledge hub. The company committed Rs 15,000 crore for hyperscaling AI data centres in Telangana. The state received significant investments in the technology space in the recent past. In January, AWS announced plans to invest Rs 60,000 crore for data centres in Hyderabad, while Tillman Global Holdings and Blackstone committed Rs 20,000 crore in data centre projects. Telangana has sharpened its focus on AI development, signing 26 agreements with private players last September. The state is developing a 200-acre AI City near Hyderabad and aims to become a Rs 82 lakh crore ($1 trillion) economy.

Telangana Partners with Google to Boost AI Development

As part of the partnership, Google for Startups will provide mentorship and accelerator programs to help new businesses grow. On Thursday, Google announced a strategic partnership with the Government of Telangana to leverage the transformative power of Artificial Intelligence (AI) across the state. IT and industries minister Sridhar Babu mentioned in his LinkedIn post that Telangana is taking a big step in artificial intelligence (AI) by collaborating with Google to drive innovation, support startups, and improve governance. "Telangana is shaping the future of AI, and our collaboration with Google marks a major leap forward. As one of the AI-first states, we are committed to building a world-class ecosystem that nurtures innovation, empowers startups, and transforms governance," Babu said. As part of the partnership, Google for Startups will provide mentorship and accelerator programs to help new businesses grow. This will further strengthen Telangana's network of over 500 AI startups and more than 80 emerging companies. Meanwhile, Google for Education will introduce AI training programs to prepare the workforce for future jobs in an AI-driven world. AI will also be used to improve key areas like agriculture, urban transport, and governance. The state has already attracted $15 billion in investments for AI City, large-scale tech projects, and data infrastructure. Telangana looks forward to working with Google to create new opportunities for businesses and people, driving progress in AI and technology across various sectors. Preeti Lobana, country manager of Google India, stated that the collaboration with Telangana underscores Google's dedication to India's digital future. She expressed enthusiasm about integrating the company's AI expertise with the state's vision to develop an AI-ready workforce, support startup innovation, and address critical sectors such as agriculture, education, and sustainability. Meanwhile, Microsoft inaugurated a new 1.2 million-square-foot engineering facility in Hyderabad on Thursday. It will house 3,000 engineers.

Microsoft Opens New Hyderabad Campus, Partners with Telangana Govt for AI Growth

Microsoft has inaugurated a new 1.2 million-square-foot engineering facility in Hyderabad, which will house 3,000 engineers. Microsoft inaugurated a new 1.2 million-square-foot engineering facility in Hyderabad on Thursday. It will house 3,000 engineers. Speaking on the occasion, IT and industries minister Sridhar Babu highlighted Hyderabad's rapid growth as a global technology hub. "Hyderabad is not just a city of today. It is the city of the future. With 52 research and development institutions, 30 universities, and a skilled workforce of six million, we are driving the next era of innovation," he said. He further added that Microsoft's expansion in Hyderabad marks a significant milestone. The company, which started with a small research and development centre, now has its largest hub outside the United States in the city. Babu further emphasised Hyderabad's contributions to global technology, saying, "Hyderabad has not only nurtured technology talent but also shaped global leadership, giving the world Satya Nadella and redefining artificial intelligence and cloud innovation." The Telangana government is making major investments to solidify the city's position in the technology sector. Babu revealed that the state is investing $15 billion in initiatives such as Future City, Artificial Intelligence City, Young India Skill University, and deep technology centres of excellence in quantum computing, AI, bioinformatics, and legal technology. Additionally, the government is working towards 100% digital connectivity for nine million households and the development of AI-driven data centres. Looking ahead, Babu states that Hyderabad aims to go beyond being a Global Capability Centre (GCC) hub and transform it into a Global Value Centre (GVC). "The future of global technology is being built here," Babu said, reinforcing Hyderabad's growing influence in the world's deep technology value chain. A Memorandum of Understanding (MoU) was signed between Microsoft and the government of Telangana. This follows a January 2025 meeting between the Chief Minister and Microsoft CEO Satya Nadella, during which they agreed to collaborate on modernising government IT, cloud infrastructure, and accelerating AI adoption. Microsoft India Development Centre managing director and president Rajiv Kumar said the new building at the Microsoft IDC in Hyderabad will enable them to innovate and develop next-generation AI products.