Microsoft to invest 17.5 billion USD in India’s “AI first” projects

New Delhi, Dec 10,2025: In a major endorsement of India’s technological trajectory, Prime Minister Narendra Modi and Microsoft Chairman and CEO Satya Nadella today announced a massive US$17.5 billion investment by the tech giant into the country.
This commitment, which Microsoft terms its largest-ever investment in Asia, is specifically aimed at building the necessary infrastructure, skills, and sovereign capabilities to realize India’s ambitious “AI first” future.
The announcement followed a “very productive discussion” between the two leaders, highlighting the growing synergy between India’s push for digital public infrastructure and the global need for AI innovation.
Satya Nadella confirmed the monumental investment via a post on X, detailing the purpose of the capital injection: “Thank you, PM @narendramodi ji, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing US$17.5B—our largest investment ever in Asia—to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI first future.”
The focus on “sovereign capabilities” is particularly significant, signalling Microsoft’s intent to tailor its cloud and AI services to meet India’s unique regulatory and data residency requirements, thereby empowering Indian companies and government bodies with advanced AI tools while ensuring compliance.
PM Modi welcomed the commitment, emphasizing the potential benefits for India’s vast and digitally active young population. The Prime Minister’s post on X, conveyed a strong sense of optimism regarding India’s role in the global AI landscape: “When it comes to AI, the world is optimistic about India! Had a very productive discussion with Mr Satya Nadella. Happy to see India being the place where Microsoft will make its largest-ever investment in Asia. The youth of India will harness this opportunity to innovate and leverage the power of AI for a better planet.”
This sentiment aligns with the government’s “Digital India” initiative and its recent push to establish India as a hub for both AI talent and AI-driven solutions for global challenges. The investment is expected to significantly boost the country’s cloud computing capacity, accelerate the development of AI-powered solutions across sectors like healthcare, agriculture, and governance, and create millions of jobs requiring next-generation digital skills.
Microsoft’s US$17.5 billion pledge is the latest in a series of major investments by global tech giants, underscoring the confidence in India’s digital economy. The country’s large, open data sets, rapidly expanding internet penetration, and strong talent pool have made it an increasingly attractive destination for developing and deploying large-scale AI models.
The size of this specific investment—US$17.5 billion—is unprecedented for Microsoft in the Asian region and reflects the company’s strategic decision to make India a cornerstone of its global AI deployment strategy. The capital is expected to flow into establishing new hyperscale data centres, expanding digital skilling programmes, and forming deeper collaborations with local startups and educational institutions.