About 1 Billion Internet Users
India's Abundant STEM Talent
Investments Continue from Google, Amazon, and Others
India, which is pursuing an 'AI-first' strategy, is receiving a flood of attention from major U.S. big tech companies such as Google, Amazon, and now Microsoft (MS). MS will invest 26 trillion won, its largest investment in the Asia region, over the next four years to build India's largest data center and AI and cloud infrastructure network.
Nadella's Pro-India Initiatives
Satya Nadella, CEO of Microsoft, 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 (approximately 25.7 trillion won) in India's cloud and AI infrastructure over the next four years (2026-2029). This is an additional investment, separate from the $3 billion investment announced earlier this year.
Through this investment, MS plans to expand its data centers in cities such as Bengaluru, Hyderabad, and Pune, and hire 22,000 employees to further develop its AI infrastructure. According to Reuters, "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 has integrated AI capabilities into India's Ministry of Labour 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 university in India before studying in the United States, posted a photo with Prime Minister Modi on social media platform 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 Attracts a Wave of Big Tech Investment
India is currently one of the few countries, aside from the United States, attracting significant attention from major big tech companies. As the world's most populous nation, India is a major market with around 1 billion internet users. The abundance of science and engineering talent is also a key advantage.
According to real estate consulting firm Colliers, the total data center capacity in India's major cities was 1.3 GW as of April this year and is expected to more than triple to 4.5 GW by 2030. Commercial real estate services company CBRE Group has also estimated that India's data center market will grow to $100 billion (approximately 147 trillion won) by 2027.
In October, Google announced plans to invest $15 billion over five years to build a data center in Andhra Pradesh, southern India. Other major big tech companies such as Amazon and OpenAI have also specifically identified India as a key destination for data center investment.
However, Prime Minister Modi, who is championing the 'AI-first' strategy, is now shifting his focus to fostering 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 decisive action in establishing a comprehensive semiconductor design and manufacturing policy," and added, "Intel will do its utmost to support the 'India Semiconductor Mission.'"
Meanwhile, MS also announced that it will invest more than 7.5 billion Canadian dollars (approximately 8 trillion won) over the next two years to expand cloud capacity in Canada. 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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