Of the total, $17.5 billion will be invested in India over four years starting in 2026, building on an earlier $3 billion pledge made this year. The spending will significantly expand Microsoft's cloud computing capacity in the country, establishing the largest hyperscale presence of any provider.
CEO Satya Nadella stated that the investment will "help build the infrastructure, skills, and sovereign capabilities needed for India's AI first future." He shared the announcement during a three-day visit to India, where he is hosting AI conferences in New Delhi, Bengaluru, and Mumbai starting Wednesday.
A new major data center region in Hyderabad is scheduled to come online in mid-2026 and will become Microsoft's largest hyperscale facility in India. The company will also expand its existing data center regions in Chennai, Hyderabad, and Pune. Additionally, Microsoft has doubled its earlier commitment to train 20 million people in India with essential AI skills by 2030.
India, with approximately one billion internet users and a large technology talent pool, continues to attract substantial investment from global technology companies seeking to develop AI and cloud infrastructure. Data center capacity across the country is projected to more than triple to around 4.5 gigawatts by 2030.
Separately on Tuesday, Microsoft confirmed it will invest over C$7.5 billion ($5.42 billion) in Canada during 2026 and 2027 as part of a broader C$19 billion commitment spanning 2023 to 2027. The funds will support expansion of Azure cloud services and strengthen collaboration with Canadian AI company Cohere to offer advanced models on the Azure platform.
The announcements reflect continued strong capital allocation by leading technology providers toward AI-enabling infrastructure worldwide. Microsoft currently employs more than 22,000 people in India and approximately 5,300 in Canada.
Recent months have also seen the company commit $10 billion to AI infrastructure in Portugal and $15 billion in the United Arab Emirates, demonstrating a broad, multi-region strategy to meet rising global demand for cloud and artificial intelligence services. The latest investments underscore confidence in long-term growth opportunities across both established and rapidly developing digital markets.
