Microsoft has announced a new $23 billion plan to expand its artificial intelligence infrastructure worldwide, with most of the funding directed to India as the company strengthens its presence in the fast-growing digital market.
Chief Executive Satya Nadella said the company will invest $17.5 billion in India from 2026, calling it Microsoft’s largest commitment in Asia. The investment builds on an earlier $3 billion pledge and is expected to expand the company’s cloud and AI capacity across the country.
“With around a billion internet users and deep tech talent, India has become a key destination for U.S. tech giants,” Nadella said. He added in a post on X that the investment will “help build the infrastructure, skills, and sovereign capabilities needed for India’s AI-first future.”
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As part of the plan, Microsoft will develop a new hyperscale data centre in Hyderabad and expand its cloud regions in Chennai and Pune. The company has also doubled its target to train 20 million Indians in AI skills by 2030.
Microsoft announced a separate investment of more than C$7.5 billion in Canada to boost cloud capacity and support new AI partnerships.
The company, along with other major U.S. tech firms, is increasing its spending as global demand grows for AI tools such as Copilot and ChatGPT. Analysts, however, have warned that the rapid rise in AI investments has raised concerns about overheating in the sector.
Nadella is currently in India for a series of AI-focused events in New Delhi, Bengaluru and Mumbai.