Microsoft announced its ambitious $3 billion investment plan on January 7, 2025, to expand cloud computing and artificial intelligence (AI) infrastructure in India. The announcement was made during the Microsoft AI Tour held in Bengaluru, where CEO Satya Nadella emphasized the country’s potential to become a global leader in AI innovation. This investment aims to establish new data centers and skills training programs, impacting millions of lives across the nation.
During the event, Nadella confirmed the company's commitment to training 10 million people by 2030 to equip the workforce with necessary AI skills. He said, “India is rapidly becoming a leader in AI innovation, unlocking new opportunity across the country. The investments in infrastructure and skilling we are announcing today reaffirm our commitment to making India AI-first, and will help toensure people and organizations across the country benefit broadly.”
Puneet Chandok, president of Microsoft India and South Asia, expressed optimism about India’s ability to excel globally, stating, “Today’s announcement strengthens our belief in India’s potential and our resolve to equip the country with the resources and future-ready skills needed to excel in the global marketplace. We will continue to use AI tounlock possibilities for the next few decades and assure communities across the country have access to the compute they need to prosper.”
Microsoft plans to achieve its goal through the ADVANTA(I)GE India initiative, which has already successfully trained 2.4 million individuals within less than a year, exceeding its initial target of 2 million. Notably, 65% of these trained individuals were women, and 74% were from tier II and tier III cities. The initiative showcases the company’s commitment to inclusive growth and equipping underrepresented communities with cutting-edge skills.
Shri Jayant Chaudhary, Minister of State for Skill Development and Entrepreneurship, lauded the partnership, saying, “Through the ‘AI for India’ mission, we aim to empower citizens with cutting-edge AI skills, driving innovation, creating jobs, and bridging the digital divide. Collaborations with global leaders like Microsoft are pivotal to this transformation.”
Microsoft Research India, alongside its ambitious investment plan, introduced the AI Innovation Network. This initiative aims to propel research collaborations and accelerate the transition from theory to practical applications. It includes partnerships with various digital natives to work on AI applications across different sectors. Prateek Maheshwari, co-founder of Physics Wallah, praised this collaboration, stating, “At Physics Wallah, we’ve always believed in the power of technology to transform education. Our collaboration with Microsoft Research is a step towardcreating tools... to make education more accessible, personalized, and impactful.”
The company also signed a memorandum of undernstanding (MoU) with SaaSBoomi, aiming to impact over 5,000 startups and 10,000 entrepreneurs. This ambitious partnership targets regional development, promising to create 200,000 new jobs and attract $1.5 billion more venture capital funding over the next five years. It reflects Microsoft’s strategy to build India as a product nation contributing to its trillion-dollar economy.
Microsoft continues its commitment to responsible and sustainable AI by addressing the resources necessary for AI growth. The company is on track to become carbon negative, water positive, and zero waste by 2030. Its datacenters will implement designs to consume zero water, promoting sustainability.
With its bold move to strengthen India’s digital infrastructure, Microsoft is set to play a significant role in advancing the country’s AI ecosystem and ensuring equitable opportunities through inclusive education, innovation, and sustainable practices.
This move not only positions Microsoft at the forefront of India’s tech evolution but also underlines the importance of nurturing AI talents for the broader digital economy, reinforcing the nation’s aspirations toward becoming Viksit Bharat (Developed India) by 2047.