REDMOND, Wash. (Diya TV) — Microsoft will invest $3 billion in artificial intelligence and cloud infrastructure in India over the next two years, a major boost to the growing nation’s tech ecosystem. The announcement came a day after Microsoft CEO Satya Nadella met with Indian Prime Minister Narendra Modi.

This investment will include setting up new data centers and expanding the company’s cloud capabilities in India, which has emerged as a major hub for AI innovation. Nadella pointed out that India is growing to be a leadership hub in AI and unlocking opportunities across industries.

“India is rapidly becoming a leader in AI innovation, unlocking new opportunities across the country,” Nadella said. “The investments in infrastructure and skills we are announcing today reaffirm our commitment to making India AI-first, and will help ensure people and organizations across the country benefit broadly.”

The world’s most populous nation has emerged as a critical frontier for AI research and development. Global tech juggernauts increasingly seek to mine their talent base and user groups. In recent months, leaders such as Jensen Huang, head of Nvidia, and Yann LeCun Meta’s top AI scientist made high-profile stops in India, signaling the country is gaining importance globally in the domain of AI.

Microsoft is focusing on AI as part of the company’s strategy to increase its cloud services, which have driven its growth during Nadella’s tenure. This is a move after Microsoft President Brad Smith revealed that the company would invest $80 billion in AI and cloud infrastructure across the globe this fiscal year.