Microsoft plans to invest $3bn in India over two years to expand cloud and artificial intelligence (AI) infrastructure and bolster its workforce's skills, company Chairman and CEO Satya Nadella announced on January 7, 2025. According to a press release, the initiative includes new data centres to support India's burgeoning AI sector.

The investment is part of Microsoft’s broader strategy to make India “AI-first,” with a commitment to train 10mn people in AI skills by 2030 under the company’s ADVANTA(I)GE India programme. This initiative reflects the nation’s push to remain competitive in a rapidly evolving technological landscape. Puneet Chandok, President of Microsoft India and South Asia, emphasised the focus on integrating AI across sectors, from education to finance, enhancing accessibility and impact across tier II and tier III cities.

Microsoft Research Lab also unveiled the AI Innovation Network, aiming to expedite the transformation of research into scalable business solutions. Collaborations with domestic players, including Physics Wallah, highlight efforts to personalise education and enhance learning outcomes using advanced AI technologies. The company has also forged a partnership with SaaSBoomi, a prominent B2B startup network, to strengthen India’s AI and SaaS ecosystem.

The collaboration aims to impact 5,000 startups and 10,000 entrepreneurs, while also fostering regional development in smaller cities, creating over 200,000 jobs, and attracting $1.5bn in venture funding by 2030. Microsoft’s plans also include sustainable data centres powered by renewable energy and innovative cooling systems, supporting its commitment to carbon neutrality. The company’s efforts underline a dual focus on enabling digital transformation and fostering equitable access to AI resources in India.