Microsoft's President for India and South Africa, Puneet Chandok, stated in a Tuesday interview that the company's largest data center in India is expected to become operational by mid-2025. This move is a core part of the tech giant's significant capital expenditure in the Indian market, aiming to accelerate its presence in one of the world's largest markets for artificial intelligence (AI) services.
Chandok noted that demand for Microsoft's Azure cloud services and Copilot 365 AI assistant is currently extremely robust in India. In response to this trend, Microsoft announced an additional $17.5 billion investment in India late last year. Combined with a $3 billion commitment made earlier in 2025, this project represents Microsoft's single largest investment in Asia. The new data center under construction is located in Hyderabad, a major tech hub in southern India. Once operational, it will be Microsoft's highest-capacity infrastructure facility within the country, specifically focused on serving a growing customer base for AI services. To date, major Indian IT firms including Infosys, Cognizant, and Tata Consultancy Services (TCS) have become key clients, each having purchased approximately 50,000 Copilot service licenses.
Regarding the company's global strategy, Chandok emphasized that Microsoft's operations in India not only serve the local market but also provide crucial research and development support for core AI functionalities being promoted globally. Currently, Microsoft employs over 22,000 staff across major cities in India.
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