About 1 Billion Internet Users
India's Abundant STEM Talent
Investments Continue from Google, Amazon, and Others
India, which has adopted an 'AI-first' strategy, is now receiving significant attention from major U.S. big tech companies, including Google, Amazon, and most recently, Microsoft (MS). MS plans to invest 26 trillion won, its largest investment in Asia, to build the largest data center and AI and cloud infrastructure network in India over the next four years.
Nadella's Pro-India Moves
Satya Nadella, CEO of MS, who is currently visiting India, announced on December 9 (local time) after meeting with Prime Minister Narendra Modi that the company will invest $17.5 billion (about 25.7 trillion won) over the next four years (2026-2029) in India's cloud and AI infrastructure. This is in addition to the $3 billion investment announced earlier this year.
Through this investment, MS plans to expand data centers in cities such as Bengaluru, Hyderabad, and Pune, and hire 22,000 employees, thereby expanding its AI infrastructure. Reuters reported, "With this, MS will secure the largest cloud computing presence in India."
MS, under Nadella's leadership, has also taken notable pro-India steps. The company is integrating AI features into the Indian Ministry of Labor's systems to improve job matching and welfare programs, and is investing in talent development. In addition, MS has launched a 'Sovereign Cloud' to allow data to be stored within India.
Nadella, who graduated from a university in India before studying in the United States, posted a photo with Prime Minister Modi on the social networking service X (formerly Twitter) and emphasized, "MS's investment will help build the infrastructure, technology, and sovereign capabilities needed for India's 'AI-first' future."
India Flooded with Big Tech Interest
India is currently one of the few countries, aside from the United States, to receive a flood of interest from major big tech companies. With a population of over 1 billion and approximately 1 billion internet users, India is a key market. Its abundance of science and engineering talent is also considered a major advantage.
According to real estate consulting firm Colliers, the total data center capacity in major Indian cities reached 1.3 GW as of April, and is expected to more than triple to 4.5 GW by around 2030. Commercial real estate services firm CBRE Group also estimated that the size of India's data center market will grow to $100 billion (about 147 trillion won) by 2027.
Google announced in October that it would invest $15 billion over five years to build a data center in Andhra Pradesh, southern India. Other major big tech companies, including Amazon and OpenAI, have also specifically identified India as a key location for data center investments.
However, Prime Minister Modi, who has championed the 'AI-first' strategy, is now shifting his focus to developing India’s domestic semiconductor manufacturing capabilities. On the same day, Prime Minister Modi reportedly held a series of meetings with Intel CEO Lip-Bu Tan to discuss semiconductor policy.
CEO Tan posted on X, "I highly appreciate the Prime Minister's decision to establish a comprehensive semiconductor design and manufacturing policy," adding, "Intel will do its utmost to support the 'India Semiconductor Mission.'"
Meanwhile, MS also announced on the same day that it will invest more than 7.5 billion Canadian dollars (about 8 trillion won) in Canada over the next two years to expand cloud capacity. As a result, MS's cumulative investment in Canada from 2023 to 2027 will reach 19 billion Canadian dollars (about 20 trillion won).
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