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Microsoft to launch largest data center in India by 2026
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1 min read
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Briefly Editorial Team

Microsoft to launch largest data center in India by 2026

TL;DR

  • •Microsoft will invest $17.5B in India, including a Hyderabad data center.
  • •The center will be the company's largest facility in the region.
  • •Copilot AI clients in India include Infosys, Cognizant, and Tata Consultancy Services.

Why it matters

Microsoft's infrastructure expansion in India reflects global strategies to scale cloud and AI services. With 1 billion internet users and a thriving tech ecosystem, India is becoming a critical market for tech giants.

Investment and Strategy

Microsoft plans to launch its largest data center in India by mid-2026, according to Reuters. This is part of a $17.5 billion investment program in the country, in addition to previously announced $3 billion. The new facility in Hyderabad will be Microsoft's largest data center in the region.

Market and Competition

The company is targeting India's growing demand for cloud services and AI solutions. Microsoft President for India and South Asia Punith Chandok noted high demand for Azure cloud platform and AI service Copilot. Major clients include Infosys, Cognizant, and Tata Consultancy Services, which use tens of thousands of Copilot licenses.

Challenges and Outlook

Microsoft employs over 22,000 people in India and South Asia but faces talent shortages. The Hyderabad project is part of Microsoft's strategy to expand infrastructure in fast-growing markets. India's 1 billion internet users and robust tech ecosystem make it a key focus for tech companies.