Microsoft CEO Satya Nadella met Prime Minister Narendra Modi on Wednesday and announced that the tech giant will invest over US$17.5 billion (₹1.5 lakh crore) in India—its largest-ever investment in Asia, to accelerate the country’s artificial intelligence ecosystem. After the meeting, Nadella said the investment will support India’s AI ambitions by expanding infrastructure, enhancing skills and strengthening sovereign AI capabilities.
“Thank you PM Narendra Modiji for an inspiring conversation on India’s AI opportunity,” he posted, adding that Microsoft is committed to helping build an “AI-first future” for the country.
Modi Confirms Global Optimism
Prime Minister Modi welcomed the announcement. “When it comes to AI, the world is optimistic about India,” he wrote on X, calling the discussion with Nadella “very productive” and expressing confidence that India’s youth will drive innovation powered by AI.
In a statement issued shortly after the meeting, Microsoft said the new investment follows its earlier US$3 billion commitment for cloud and AI infrastructure in Bengaluru, including new data centres and extensive upskilling programmes. With the enhanced funding, the company aims to establish the largest hyperscale presence in India.
“India stands at an important moment in its AI journey determined to lead,” the company said, highlighting the country’s rapid digital transformation and expanding technology ecosystem.
Commitment Of Over 4 Years
Microsoft’s nearly US$20 billion total commitment over four years reinforces India’s status as a key global hub for AI and cloud computing infrastructure.
The announcement comes as several global technology giants increase their India investments. In October, Google CEO Sundar Pichai discussed plans for the company’s largest data and AI hub outside the US, set to be built in Visakhapatnam in partnership with the Adani Group, with US$15 billion committed over five years. Amazon has also pumped billions into Indian data centres, while Qualcomm CEO Cristiano Amon recently met the Prime Minister to discuss AI, innovation and skill development.
Last month, PM Modi emphasised India’s leadership role in shaping global norms for “ethical and human-centric AI” and confirmed that work is underway on a national AI policy.
