Key Highlights:

• Microsoft launched its fourth cloud region in India, India South Central, in Hyderabad, joining Pune, Chennai and Mumbai.
• The launch is part of Microsoft's previously announced $20.5 billion investment commitment in India.
• India generates nearly 20% of the world's data but holds only about 3% of global data centre capacity, said Puneet Chandok.
• India's current data centre capacity of about 2 GW is expected to grow to 12-14 GW by 2035.
• Chandok emphasised that building sufficient physical infrastructure is now a "national imperative" to support AI deployment at scale.

Expanding Microsoft's Footprint in India

Microsoft has launched its fourth cloud region in India in Hyderabad, expanding its cloud and artificial intelligence (AI) infrastructure footprint as the country gears up for a major increase in data centre capacity and enterprise AI adoption.

A New Region Joining an Established Network

The newly launched India South Central cloud region in Hyderabad joins Microsoft's existing cloud regions in Pune, Chennai and Mumbai, giving the technology giant its largest hyperscale cloud infrastructure presence in the country to date.

Part of a Major Investment Commitment

The launch forms part of Microsoft's previously announced $20.5-billion investment commitment in India, aimed at strengthening cloud capabilities, AI infrastructure, skilling initiatives and operational expansion, positioning this new region as one concrete deliverable within that broader, multi-year investment plan.

India at a Pivotal Moment

Speaking at the launch, Microsoft India and South Asia President Puneet Chandok said India is at a pivotal moment in its digital transformation journey, with the country emerging as one of the world's largest generators of data.

A Significant Gap Between Data Generation and Capacity

According to Chandok, India now generates nearly 20 per cent of the world's data but accounts for only about 3 per cent of global data centre capacity, highlighting a substantial imbalance between the country's role as a data producer and its current infrastructure capacity to actually process and store that data domestically.

Framing the Opportunity

"20 per cent of the world's data is being generated by India, but only 3 per cent of the world's data centre capacity sits in our country," Chandok said. "Between these two numbers sits the largest opportunity of the decade for India," he added, framing this gap not as a shortcoming but as a significant growth opportunity for the country's digital infrastructure sector.

Projected Growth in Data Centre Capacity

India currently has about 2 gigawatts (GW) of data centre capacity, a figure Chandok expects to increase to between 12 GW and 14 GW by 2035. He said this rapid expansion would be necessary as businesses, government departments and institutions move beyond AI experimentation and begin deploying AI applications at scale, a shift that carries far greater computing and infrastructure demands than earlier, more limited AI pilot projects.

The Real Bottleneck: Infrastructure, Not Demand

Chandok emphasised that demand for AI services is already strong, and that the key challenge lies in building sufficient infrastructure to support future growth, suggesting that the primary constraint on India's AI adoption is not a lack of interest or use cases, but rather the physical computing and data centre capacity needed to actually deliver these services at scale.

Physical Infrastructure as a National Priority

"The digital scale that we are building requires physical scale, and that is the national imperative for all of us," he said, framing the buildout of data centre infrastructure not merely as a business priority for Microsoft, but as a broader national challenge that will require sustained investment and coordination across the technology sector, government and enterprise stakeholders to fully realise India's potential as a major hub for AI and cloud computing.

Key Highlights:

• Microsoft launched its fourth cloud region in India, India South Central, in Hyderabad, joining Pune, Chennai and Mumbai.
• The launch is part of Microsoft's previously announced $20.5 billion investment commitment in India.
• India generates nearly 20% of the world's data but holds only about 3% of global data centre capacity, said Puneet Chandok.
• India's current data centre capacity of about 2 GW is expected to grow to 12-14 GW by 2035.
• Chandok emphasised that building sufficient physical infrastructure is now a "national imperative" to support AI deployment at scale.

Expanding Microsoft's Footprint in India

Microsoft has launched its fourth cloud region in India in Hyderabad, expanding its cloud and artificial intelligence (AI) infrastructure footprint as the country gears up for a major increase in data centre capacity and enterprise AI adoption.

A New Region Joining an Established Network

The newly launched India South Central cloud region in Hyderabad joins Microsoft's existing cloud regions in Pune, Chennai and Mumbai, giving the technology giant its largest hyperscale cloud infrastructure presence in the country to date.

Part of a Major Investment Commitment

The launch forms part of Microsoft's previously announced $20.5-billion investment commitment in India, aimed at strengthening cloud capabilities, AI infrastructure, skilling initiatives and operational expansion, positioning this new region as one concrete deliverable within that broader, multi-year investment plan.

India at a Pivotal Moment

Speaking at the launch, Microsoft India and South Asia President Puneet Chandok said India is at a pivotal moment in its digital transformation journey, with the country emerging as one of the world's largest generators of data.

A Significant Gap Between Data Generation and Capacity

According to Chandok, India now generates nearly 20 per cent of the world's data but accounts for only about 3 per cent of global data centre capacity, highlighting a substantial imbalance between the country's role as a data producer and its current infrastructure capacity to actually process and store that data domestically.

Framing the Opportunity

"20 per cent of the world's data is being generated by India, but only 3 per cent of the world's data centre capacity sits in our country," Chandok said. "Between these two numbers sits the largest opportunity of the decade for India," he added, framing this gap not as a shortcoming but as a significant growth opportunity for the country's digital infrastructure sector.

Projected Growth in Data Centre Capacity

India currently has about 2 gigawatts (GW) of data centre capacity, a figure Chandok expects to increase to between 12 GW and 14 GW by 2035. He said this rapid expansion would be necessary as businesses, government departments and institutions move beyond AI experimentation and begin deploying AI applications at scale, a shift that carries far greater computing and infrastructure demands than earlier, more limited AI pilot projects.

The Real Bottleneck: Infrastructure, Not Demand

Chandok emphasised that demand for AI services is already strong, and that the key challenge lies in building sufficient infrastructure to support future growth, suggesting that the primary constraint on India's AI adoption is not a lack of interest or use cases, but rather the physical computing and data centre capacity needed to actually deliver these services at scale.

Physical Infrastructure as a National Priority

"The digital scale that we are building requires physical scale, and that is the national imperative for all of us," he said, framing the buildout of data centre infrastructure not merely as a business priority for Microsoft, but as a broader national challenge that will require sustained investment and coordination across the technology sector, government and enterprise stakeholders to fully realise India's potential as a major hub for AI and cloud computing.