Microsoft India Opens Fourth Azure Data Center in Hyderabad With $20.5 Billion Investment

Microsoft opens fourth Azure data center region in India

The launch is part of Microsoft's $20.5 billion investment commitment to India's cloud and AI infrastructure, which included a $3 billion commitment announced in January 2025 and a $17.5 billion pledge announced in December 2025. India's Azure business has grown by double digits annually over the past two fiscal years, according to the company. "Trusted infrastructure close to where data lives, teams work and decisions are made" is what organizations need to move from AI experimentation to business value, Puneet Chandok, president of Microsoft India and South Asia, said in a statement. "We are not investing in infrastructure to keep up with demand. We are investing in India's ability to set the pace for the world."

Microsoft opens its largest India data center hub as AI race heats up

Microsoft launched its largest India data center in Hyderabad on Thursday. This new facility brings Microsoft's cloud regions in India to four. Adani Group and HDFC Bank are among the early users of this new center. Microsoft has committed $20.5 billion to expand its India operations. Rivals Alphabet and Amazon are also investing in India's data center capacity. Microsoft launched its largest India data center in Hyderabad on Thursday and has signed up Adani Group and HDFC Bank among early users as it races rivals for the country's fast-growing AI market. The India South Central facility brings Microsoft's cloud regions in ⁠India ⁠to four, adding to existing centers in Pune, Chennai and Mumbai, and cementing its position as the country's largest cloud-computing provider, The Windows maker has committed about $20.5 billion to expand its India opreations, betting on a market of more than 1 billion internet users and one ⁠of the world's deepest pools of tech talent. Here are more details: Azure, Microsoft's cloud-computing arm, has posted double-digit ⁠revenue increases in India for the last two years, the company said. Microsoft also operates two data centers in the South Asian nation with Indian billionaire Mukesh Ambani's Jio. Creating value with AI "requires trusted infrastructure close to where data lives, teams work and decisions are made," said Microsoft India President Puneet Chandok, adding the new facility "is a critical part of that foundation" Rivals Alphabet and Amazon are also pouring ⁠money into data center capacity in India, drawn by the country's large potential pool of AI users. Not all of those efforts have gone smoothly. Environmentalists have accused authorities of fast-tracking a planned Google data center hub in India without weighing risks to water supplies and wildlife, allegations the government rejects.