Microsoft Brings AI-Ready Capabilities to India Cloud Infrastructure
Establishes India South Central region as a strategic hub for Asia and Global South
Microsoft has launched its India South Central datacenter region in Hyderabad, designating it as a strategic hub for Asia and the Global South as the company expands its cloud and artificial intelligence infrastructure footprint in India.
Announced at the Microsoft AI Infrastructure Summit in New Delhi on September 21, the new Hyderabad region is now live and has been built with a resilient three-zone architecture designed to scale as demand grows. Microsoft said additional Azure and AI capabilities will progressively become available in the region.
AI INFRASTRUCTURE SNAPSHOT
4th — Microsoft cloud region in India
$20.5 billion — Microsoft’s stated investment commitment to India
3 zones — Architecture of the Hyderabad region
10+ million — Indians Microsoft says it has equipped with AI skills
Microsoft said its datacenter regions across India are now AI-enabled, with AI-capable hardware, high-efficiency cooling and the platform infrastructure required to run advanced AI workloads. The company says this will allow Indian organisations to deploy more AI workloads closer to their operations.
The Hyderabad facility uses high-efficiency mechanical cooling designed for effectively zero water use for cooling, according to Microsoft. The company is positioning this as part of an effort to expand AI computing capacity while addressing the resource demands associated with datacenter infrastructure.
Microsoft said its Indian cloud capabilities are aligned with Ministry of Electronics and Information Technology (MeitY) guidelines and are designed to help customers address applicable data-protection, cybersecurity and sector-specific requirements, including India's DPDP framework and guidance from RBI and CERT-In.
The India South Central region is part of Microsoft’s previously announced $20.5 billion commitment to India. According to the company, Adani Group, Bajaj Finserv, HDFC Bank and PB Pay are among the organisations that have signed up for the new region.
ECONOMIC IMPACT ESTIMATE
$140–200 billion — Estimated economic output that India's wider datacenter buildout could generate through 2030, according to a BCG study cited by Microsoft.
Puneet Chandok, President of Microsoft India and South Asia, described India South Central as the company's fourth cloud region in the country and said it had been built for advanced AI workloads. He also linked the infrastructure expansion with Microsoft's broader push to build AI skills in India.
Microsoft says it has already equipped more than 10 million Indians with AI skills and is working toward a target of 20 million people by 2030.
Minister of State for Commerce and Industry and Electronics & Information Technology Jitin Prasada, speaking at the event, said the new datacenter region strengthens the digital infrastructure needed to support India's AI ambitions and complements the IndiaAI Mission.
At launch, India South Central provides a broad portfolio of Azure services. Microsoft said the region is designed to eventually support its wider Azure and AI portfolio, including Microsoft Foundry, as additional capabilities are introduced over the coming months.
The company also sees the Hyderabad region as infrastructure extending beyond domestic demand. Microsoft said India's combination of hyperscale infrastructure, engineering talent and a rapidly growing digital economy could support customers across South Asia and contribute to AI development for the wider Global South.