India is fast emerging as the preferred destination for major global tech investments. In just the past 48 hours, the country has attracted $52 billion in commitments from Microsoft and Amazon, reflecting its rising significance in the global AI landscape and the government’s active push for artificial intelligence.
Microsoft and Amazon are not alone. In recent weeks, other tech giants including Google and Intel have also announced substantial investments, signaling India’s growing role as a hub for AI and advanced technology.
Tech Giants Pledge Billions
Combined, Amazon, Microsoft, and Google have pledged roughly $67.5 billion in recent deals aimed at building India’s AI infrastructure.
On December 10, Amazon committed $35 billion by 2030 to expand exports, create one million jobs, and strengthen AI initiatives in the country. The investment focuses on three strategic pillars: AI-driven digitisation, export growth, and job creation.
The announcement followed Microsoft CEO Satya Nadella’s meeting with Prime Minister Narendra Modi, where he unveiled a $17.5 billion plan to enhance AI and cloud infrastructure in India. The initiative includes expanding data centre capacity, training local talent, and developing sovereign technology capabilities, marking Microsoft’s largest investment in Asia to date.
In October, Alphabet, Google’s parent company, revealed plans to invest $15 billion to build a new AI data hub in Vishakapatnam, Andhra Pradesh. The facility will join Google’s global network of AI centres across 12 countries. “It’s the largest AI hub we are investing in outside the United States,” said Google Cloud CEO Thomas Kurian.
Semiconductor Push with Intel
Intel Corp signed an MoU with the Tata Group on December 8 to collaborate on semiconductor and systems manufacturing, packaging, and AI computing in India. The partnership aims to strengthen India’s domestic semiconductor ecosystem. Intel CEO Lip-Bu Tan met Prime Minister Modi on December 9 alongside Microsoft and Cognizant executives to discuss accelerating AI adoption.
Apple Expands Manufacturing
Apple has invested billions in India this year via its suppliers. Foxconn, an Apple vendor, announced a $1.5 billion investment in Tamil Nadu to expand iPhone component production. Additionally, Apple plans to build two major factories near Bangalore and Chennai, creating up to 100,000 jobs as part of its manufacturing push.
OpenAI and Meta Deepen Presence
OpenAI, creator of ChatGPT, will open its first Indian office in New Delhi later this year and has already started recruiting. Meta also announced a new office in Bengaluru earlier this year, hiring engineers and AI experts to strengthen its AI initiatives.
Why India is Becoming an AI Hotspot
India’s appeal lies in its combination of scale, resources, and cost advantages. CNBC reports that India has abundant land for large data centres, unlike more mature Asia-Pacific markets such as Japan, Australia, China, and Singapore. Lower power costs compared with Europe, along with a relatively flexible regulatory environment, further enhance India’s attractiveness.
These factors are converging to position India as a global hub for AI and technology investment, drawing the world’s biggest tech firms to its shores.
