Global technology leader Microsoft has announced plans to invest $17.5 billion in India to strengthen the country’s artificial intelligence and digital infrastructure, marking what the company describes as its largest investment in Asia to date.
The announcement was made on Tuesday by Microsoft Chief Executive Officer, Satya Nadella, following a meeting with Indian Prime Minister Narendra Modi in New Delhi. Nadella said the investment would support India’s ambition to become an AI-driven economy.
“To support the country’s ambitions, Microsoft is committing $17.5 billion — our largest investment ever in Asia — to help build the infrastructure, skills and sovereign capabilities needed for India’s AI-first future,” Nadella said in a post on X. He did not provide a detailed breakdown of how the funds would be deployed.
Nadella also thanked Prime Minister Modi for what he described as an “inspiring conversation” on India’s growing role in artificial intelligence and emerging technologies.
The new commitment significantly expands Microsoft’s footprint in India. Earlier this year, the company had announced plans to invest $3 billion over two years in AI and cloud infrastructure in the country.
India has increasingly attracted large-scale investments from global technology companies, driven by its rapidly expanding digital market. The country is expected to surpass 900 million internet users by the end of the year, making it one of the world’s largest online populations and a key growth market for global firms.
Artificial intelligence has emerged as a major focus of these investments. In October, U.S.-based AI startup Anthropic unveiled plans to open an office in India, with its chief executive, Dario Amodei, holding talks with Prime Minister Modi. During the same period, Google announced a $15 billion investment plan spanning five years, alongside the development of a large data centre and AI hub in the country.
OpenAI has also confirmed plans to establish a presence in India, with CEO Sam Altman noting that usage of ChatGPT in the country has increased fourfold over the past year. In addition, AI company Perplexity entered into a major partnership with Indian telecom operator Airtel in July, offering Airtel’s 360 million subscribers a free one-year subscription to Perplexity Pro.
Despite the surge in investment, India’s ambition to position itself as a global technology and AI hub faces regulatory challenges. Recent media reports indicate that authorities are considering new digital regulations that would require smartphone manufacturers to enable permanent satellite-based location tracking on devices — a proposal that has raised concerns among digital rights groups.
Nonetheless, the scale of Microsoft’s latest commitment underscores growing confidence among global technology firms in India’s long-term digital and AI potential.
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