HYDERABAD, India (Diya TV) — Microsoft has opened its largest data center in India in Hyderabad, marking a major step in the company’s push to expand artificial intelligence and cloud computing services in one of the world’s fastest-growing digital markets. The company also named the Adani Group and HDFC Bank among the first customers to use the new facility as demand for AI-powered services continues to grow across India.
The new India South Central cloud region increases Microsoft’s cloud presence in the country to four regions. The company already operates cloud regions in Pune, Chennai, and Mumbai. As a result, Microsoft now has the largest hyperscale cloud footprint in India.
The expansion comes as global technology companies compete to strengthen their AI infrastructure in India. Microsoft, Alphabet, and Amazon continue to invest heavily because India offers a large internet population, a skilled technology workforce, and rising demand for cloud-based services.
Microsoft has committed about $20.5 billion toward AI and digital infrastructure investments in India through plans announced in 2025. In addition, the company continues to expand its long-term presence in the country as businesses increase spending on cloud technology and artificial intelligence.
The Hyderabad facility also joins Microsoft’s global cloud network, which now spans more than 80 regions across 34 countries. This wider network allows businesses to access cloud services with greater speed, reliability, and security while supporting local data storage needs.
Microsoft already operates two data centers in partnership with Reliance Jio, led by Indian billionaire Mukesh Ambani. Together with the new Hyderabad region, these facilities strengthen the company’s ability to serve customers across industries.
The company said leading Indian organizations have already begun adopting its newest AI tools. Adani Group and HDFC Bank rank among the first major customers for the Hyderabad cloud region. Their adoption highlights growing confidence in Microsoft’s AI and cloud platform.
At the same time, India’s technology sector continues to embrace AI at a rapid pace. Microsoft said Infosys, Tata Consultancy Services, Wipro, and LTIMindtree have together purchased more than 400,000 Microsoft Copilot seats. The company believes businesses are moving beyond small AI trials and are now deploying the technology across daily operations.
Furthermore, Microsoft reported strong double-digit Azure growth in India over the past two years. The company expects this momentum to continue as more organizations modernize their digital systems and invest in AI-driven applications.
Globally, Microsoft also reported growing demand for its AI products. According to its fiscal 2026 fourth-quarter results, Microsoft 365 has surpassed 30 million paid Copilot seats worldwide. That milestone reflects increasing business interest in AI-powered productivity tools.
India remains one of Microsoft’s most important growth markets. The country has more than 1 billion internet users and one of the world’s largest pools of software engineers and technology professionals. These advantages continue to attract global investments from leading technology companies.
Meanwhile, competition in the cloud computing market continues to intensify. Alphabet and Amazon have also announced major investments to expand their data center capacity across India. Both companies hope to capture rising demand as businesses, government agencies, and startups adopt AI technologies at a faster pace.
Industry experts expect cloud infrastructure spending in India to rise steadily over the next several years. More companies now rely on cloud platforms to store data, run applications, and build AI-powered services. Therefore, technology providers continue to expand local infrastructure to improve performance and meet regulatory requirements.
