Microsoft has opened its largest data centre in India in Hyderabad as the technology giant strengthens its presence in the country’s rapidly expanding artificial intelligence and cloud computing market. The company has also brought major Indian businesses, including the Adani Group and HDFC Bank, on board as some of the early users of the new facility.
The India South Central cloud region in Hyderabad takes Microsoft’s total number of cloud regions in India to four, alongside its existing facilities in Pune, Chennai and Mumbai. The expansion further strengthens Microsoft’s position as one of the country’s leading cloud service providers.
Microsoft has committed around $20.5 billion towards expanding its operations in India, driven by the country’s large internet user base and strong pool of technology talent. The company said its Azure cloud business has recorded double-digit revenue growth in India over the past two years.
The company also operates two data centres in India in partnership with Reliance Industries-owned Jio. Microsoft India President Puneet Chandok said that building AI value requires trusted infrastructure located close to where data is stored, teams operate and key decisions are made, describing the new Hyderabad facility as an important part of that infrastructure.
Microsoft’s expansion comes as global technology companies step up investments in India to meet growing demand for AI and cloud services. Alphabet and Amazon are also increasing their data centre capacity in the country, attracted by India’s vast potential market for AI users.
However, the rapid expansion of data centres has also raised environmental concerns. Environmental groups have questioned the impact of some proposed projects, including concerns over water resources and wildlife. The government has rejected allegations that environmental risks are being overlooked.
