Microsoft's biggest India data center on track to go live in mid-2026, executive says

Microsoft’s largest data center in India will open in Hyderabad by mid-2026, marking a key milestone in the company’s $17.5 billion investment in the country, its biggest in Asia. The facility, part of Microsoft’s broader push into AI-driven cloud services, will serve a surging demand for Azure and Copilot 365, a $30-per-month AI assistant, according to Puneet Chandok, president of Microsoft India and South Asia. The investment follows an earlier $3 billion pledge in early 2025 and underscores Microsoft’s strategy to prove its AI bet to investors. Chandok told Reuters the Hyderabad center would be the company’s biggest in India, though exact capacity was not disclosed. Major Indian IT firms—including Infosys, Cognizant, and Tata Consultancy Services—have already adopted Copilot, with each acquiring around 50,000 licenses. Microsoft’s India operations, employing over 22,000 people across cities, are also driving global AI innovations. However, Chandok acknowledged a ‘war for talent’ as hiring struggles intensify, mirroring challenges worldwide. The company’s rapid expansion reflects its view of India as a critical market, with over 1 billion internet users and a deep pool of tech talent. The new data center aligns with Microsoft’s broader goal of accelerating AI adoption in emerging markets. Chandok emphasized that the company is ‘bringing this to life quickly,’ positioning itself ahead of rivals like Alphabet and Amazon in the competitive AI space.