Hyderabad gets Microsoft’s biggest India data centre

Microsoft on Thursday launched its largest India data centre hub in Hyderabad and announced the general availability of its fourth cloud region in the country, strengthening its cloud and artificial intelligence (AI) infrastructure as competition intensifies in India’s fast-growing AI market.

The new India South Central cloud region allows customers to run eligible Microsoft Cloud services and workloads from Hyderabad. It expands Microsoft’s cloud footprint beyond its existing regions in Pune, Chennai and Mumbai, giving the company the largest hyperscale cloud presence in India.

Microsoft has committed about $20.5 billion to expand its India operations and cloud and AI infrastructure. The investment includes a $3 billion commitment announced in January 2025 and a further $17.5 billion commitment made in December 2025. The company is betting on a market with more than 1 billion internet users and one of the world’s deepest pools of technology talent.

The India South Central region comprises three Availability Zones built with a resilient design aligned with India’s regulatory and seismic-zone requirements to support mission-critical workloads at scale.

Microsoft’s newest India datacenter is now live, marking an important step in strengthening the country’s AI infrastructure. See how Microsoft is shaping the next phase of India’s AI economy.
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Microsoft said the new cloud region gives organisations more local choice to modernise critical systems, build digital services and deploy AI with enterprise-grade security, compliance and governance as services become available over time.

The company said it now operates four cloud regions in India, giving customers greater local choice with enterprise-grade security, compliance and governance frameworks for the AI era.

As part of early access, the Hyderabad region is already seeing demand from leading Indian enterprises, including Adani Group, Bajaj Finserv, HDFC Bank and PB Pay. Microsoft also operates two data centres in India with Indian billionaire Mukesh Ambani’s Jio.

Azure, Microsoft’s cloud computing business, has recorded double-digit revenue growth in India over the past two years, the company said, adding that the momentum is expected to accelerate with the launch of the new data centre region.

Puneet Chandok, president, Microsoft India, said: “Whether it is a Frontier Firm already running AI at scale or an enterprise taking its first steps, the question we hear most often is: how do we move faster from experimenting with AI to creating durable business value with AI? That requires trusted infrastructure close to where data lives, teams work and decisions are made. The Microsoft India South Central datacenter region is a critical part of that foundation, backed by Microsoft’s $20.5 billion investment commitment to India’s cloud and AI future. Making India AI-first is about bringing together the scale to support growth, the skills to unlock value, the sovereignty organizations expect, and the security they depend on. We are not investing in infrastructure to keep up with demand. We are investing in India’s ability to set the pace for the world.”