Microsoft launches new AI-ready cloud region in India

At the Microsoft AI Infrastructure Summit in New Delhi on September 21, the company designated the Hyderabad region as a strategic hub for Asia and the Global South. The region features a resilient three-zone architecture and is designed to support Microsoft’s full portfolio of Azure and AI services as additional capabilities become available.

Microsoft said the new region strengthens its US$20.5 billion investment in India by expanding local cloud and AI infrastructure. Adani Group, Bajaj Finserv, HDFC Bank and PB Pay are among organizations that have already signed up to use the new region.

According to a Boston Consulting Group (BCG) study cited by Microsoft, India’s datacenter expansion could generate between $140 billion and $200 billion in economic output through 2030.

The India South Central region also expands Microsoft’s Sovereign Public Cloud foundation in India, providing local capacity, data residency options, Availability Zones and governance capabilities. Microsoft said its Indian cloud regions offer capabilities aligned with Ministry of Electronics and Information Technology (MeitY) guidelines, designed to help customers address applicable requirements under the Digital Personal Data Protection framework, as well as sector-specific expectations from the Reserve Bank of India and CERT-In.

Microsoft said the Hyderabad region operates with zero-water cooling. The company is also working with local partners on groundwater recharge, rainwater harvesting and watershed resilience. The Elikatta groundwater-recharge programme added about 5 million liters of recharge capacity by June 2026.

Beyond datacenters, Microsoft announced that more than 10 million Indians have been equipped with AI skills through Microsoft Elevate India, toward its goal of skilling 20 million people by 2030. About 25% of learners have progressed beyond foundational AI courses and obtained credentials for further learning pathways.

Microsoft is also participating as a consortium partner in the planned India-Southeast Asia (I-2SEA) submarine cable system. The 3,600-kilometre cable system will link India, Malaysia and Singapore, with dual landings in India at Machilipatnam and South Chennai. The system is targeted to be ready for service in 2029.

Earlier, Qazinform News Agency reported that Microsoft, the American Federation of Teachers (AFT), and the United Federation of Teachers (UFT) announced a national AI safety and privacy standard for schools aimed at protecting students, families, and educators.