Microsoft Expands India Cloud Footprint With Largest Data Center Hub In Hyderabad

Microsoft has inaugurated its largest data center hub in India at Hyderabad, strengthening its cloud infrastructure as demand for artificial intelligence (AI) and cloud services continues to rise. The facility adds a fourth Microsoft cloud region in the country and will serve enterprise customers across sectors requiring local data storage and computing capabilities.

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The expansion comes as global technology companies accelerate investments in India, driven by rapid digital adoption, a large internet user base and increasing enterprise spending on AI-enabled applications.

Hyderabad Facility Adds Fourth Cloud Region

The newly launched India South Central region joins Microsoft’s existing cloud regions in Pune, Chennai and Mumbai, making the company the largest cloud infrastructure provider in the country by the number of cloud regions.

Microsoft said the Hyderabad facility has already attracted major customers, including the Adani Group and HDFC Bank, which are among its early users. The company expects the additional capacity to support businesses adopting cloud computing and AI workloads that require lower latency and locally hosted infrastructure.

AI Push Drives Infrastructure Investment

This proves that Microsoft has already invested about $20.5 billion for the expansion of its business in India, showing the importance of India to Microsoft's artificial intelligence plan worldwide. The investment is aimed at strengthening digital infrastructure and supporting enterprise demand for cloud-based services.

The company also said Azure, its cloud computing platform, has recorded double-digit revenue growth in India over each of the past two years, reflecting increasing adoption across industries. Microsoft further operates two data centres in partnership with Mukesh Ambani-led Jio, expanding its cloud presence beyond its wholly owned facilities.

Speaking on the launch, Microsoft India President Puneet Chandok said trusted digital infrastructure located close to customers’ operations is essential for creating value through AI, adding that the Hyderabad data center forms a key part of that strategy.

Competition Intensifies In India’s AI Market

India has emerged as a key destination for global technology companies expanding AI and cloud infrastructure. Alphabet and Amazon are also investing in data center capacity as they seek to strengthen their presence in one of the world’s fastest-growing digital markets.

Some expansion plans have also drawn scrutiny. As per reports, environmental groups have raised concerns over a proposed Google data center project in India, alleging that approvals were accelerated without adequately assessing potential impacts on water resources and wildlife. The government has rejected those allegations.
The operation of the Hyderabad facility by Microsoft will help to further expand its cloud infrastructure in India as businesses have resorted to using AI-driven applications and technologies.