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Microsoft has unveiled USD 23 billion in new AI investments, with USD 17.5 billion dedicated to India from 2026, marking its largest Asian commitment. The spending plan includes hyperscale data centres, cloud expansion and major skilling programmes. The company will also invest USD 5.42 billion in Canada as part of its broader push to build AI capacity worldwide.
Microsoft announced USD 23 billion in fresh artificial intelligence investments on Tuesday, with the majority allocated to India as part of a substantial expansion of the company's global cloud and AI footprint. CEO Satya Nadella said the firm would commit USD 17.5 billion to India, describing it as Microsoft's largest investment in Asia. The new spending, which begins in 2026, builds on an earlier USD 3 billion pledge and is expected to give the company its most extensive cloud-computing presence in the country. Advertisement
India's combination of nearly one billion internet users, a large pool of tech talent and rapidly expanding digital infrastructure has made it a significant destination for U.S. technology firms. Industry observers noted that data centre construction has become the most immediate path for India to participate in the global AI surge, particularly as the country's semiconductor manufacturing ecosystem remains limited.
Google previously announced plans to invest USD 15 billion over five years to develop an AI data centre in Andhra Pradesh, underscoring a broader trend of concentrated investment by global technology companies in India's AI landscape. Nadella said Microsoft's new outlay would support infrastructure expansion and skill development, positioning the country for an 'AI-first future'. His comments were shared in a post on X alongside a photograph with Prime Minister Narendra Modi.
During his three-day visit to New Delhi, Bengaluru and Mumbai for Microsoft's AI conferences, Nadella is expected to outline additional initiatives. The announcement also comes at a time when diplomatic friction between India and the United States persists due to tariff-related disagreements and a stalled trade negotiation.
In a separate development, Microsoft confirmed it would invest more than CAD 7.5 billion (USD 5.42 billion) in Canada over the next two years. The investment includes new cloud capacity scheduled to go live in the second half of 2026 and forms part of a broader CAD 19 billion commitment covering 2023 to 2027. The firm is also deepening its partnership with Canadian AI company Cohere, offering the start-up's models through Azure.
Microsoft and other major cloud providers are projected to spend more than USD 400 billion on AI infrastructure this year as they scale the data centres needed to power platforms such as ChatGPT, Copilot and Gemini. However, analysts have also flagged concerns over the pace of spending and the risk of inflated valuations amid a wave of high-stakes investment.
Microsoft said a new data centre in Hyderabad would become its largest hyperscale region in India when it goes live in mid-2026. The company will also expand existing regions in Chennai, Hyderabad and Pune, and has doubled its January commitment to equip 20 million Indians with essential AI skills by 2030. According to Colliers, India's total data centre capacity is expected to exceed 4.5 GW by the end of the decade.
The company currently employs more than 22,000 people in India and over 5,300 in Canada. It also announced sizeable AI infrastructure investments recently, including USD 10 billion in Portugal and USD 15 billion in the United Arab Emirates.
Source - Reuters
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