Microsoft Launches Fourth Cloud Region in India, Expands AI Infrastructure Footprint
- IBEF
- September 22, 2026
Microsoft has launched its fourth cloud region in India in Hyderabad, expanding its cloud and artificial intelligence (AI) infrastructure presence as demand for data centre capacity and enterprise AI adoption increases. The newly launched India South Central cloud region joins Microsoft’s existing cloud regions in Pune, Chennai and Mumbai, giving the company its largest hyperscale cloud infrastructure presence in the country. The launch is part of Microsoft’s previously announced Rs. 1.94 lakh crore (US$ 20.50 billion) investment commitment in India, which is focused on strengthening cloud capabilities, AI infrastructure, skilling initiatives and operational expansion. Microsoft India and South Asia President Mr. Puneet Chandok, said India is at a pivotal stage in its digital transformation, with the country emerging as one of the world’s largest generators of data.
India currently generates nearly 20% of the world’s data but accounts for around 3% of global data centre capacity, highlighting the scope for infrastructure expansion. India currently has about 2 GW of data centre capacity, which is expected to increase to 12-14 GW by 2035. The expansion is expected to be driven by growing demand from businesses, government departments and institutions as they move from AI experimentation towards deploying AI applications at scale. The Hyderabad cloud region is expected to strengthen Microsoft’s ability to support growing demand for cloud and AI services in India. The expansion also forms part of the broader development of India’s digital infrastructure, as increasing data generation and enterprise adoption of AI require greater computing, storage and cloud capacity. The development of additional hyperscale infrastructure is expected to support the country’s evolving digital economy and AI ecosystem.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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