Explained: Satya Nadella's $3 billion investment plan for Microsoft cloud and AI infrastructure in India

Chairman and CEO Nadella on Tuesday said the investment will take place over the next two years, along with a plan to train 10 million Indians by 2030

By Naini Thaker Forbes India Staff

Published: Jan 7, 2025 05:22:10 PM IST

Updated: Jan 7, 2025 05:27:28 PM IST

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Satya Nadella, chairman and CEO, Microsoft, at the Microsoft AI Tour in Bengaluru

“Infrastructure needs to be the highest priority for India,” says Satya Nadella, chairman and CEO, Microsoft, at the Microsoft AI Tour in Bengaluru on Tuesday, while announcing the company’s plans to invest $3 billion in India in cloud and artificial intelligence (AI) infrastructure and skilling over the next two years, including the establishment of new data centres.

To accelerate AI innovation in India, Nadella also announced that Microsoft will support the country’s long-term competitiveness by training 10 million people in AI skills over the next five years, as part of the second edition of its ADVANTA(I)GE India programme.

“India is rapidly becoming a leader in AI innovation, unlocking new opportunities across the country. The investments in infrastructure and skilling we are announcing today reaffirm our commitment to making India AI-first, and will help ensure people and organisations across the country benefit broadly,” he said.

“In the past 12 months, Microsoft has been a co-pilot in making AI a reality in India, taking it from boardrooms to classrooms, commerce to communities, and finance to farmers,” said Puneet Chandok, president, Microsoft India and South Asia. He added that the $3 billion investment strengthens the company’s belief in India’s potential and “our resolve to equip the country with the resources and future-ready skills needed to excel in the global marketplace”.

Microsoft will expand its cloud and AI infrastructure across data centre campuses in the country; it already has three data centre regions in the market, and the fourth ready to go live in 2026. This investment aims to develop a scalable AI computing ecosystem to meet the growing demands of India’s rapidly expanding AI startups and research community.

Skilling 10 million Indians in AI by 2030

Indian professionals are leading the way in learning and skill-building on LinkedIn, spending nearly 50 percent more time on learning per week than the average professional. They have been early adopters of AI, with a 122 percent year-over-year increase in Indian members adding AI skills to their profiles, compared to 71 percent globally.

In 2024, Microsoft launched the ADVANTA(I)GE India initiative with the ambitious goal of training 2 million people in AI skills by 2025. Demonstrating its commitment to enable equitable AI opportunity for every Indian, Microsoft has surpassed this target ahead of schedule with 2.4 million individuals trained in under a year. Notably, 65 percent of the participants were women, and 74 percent came from tier 2 and 3 cities. Today, the company announced its next milestone, to equip 10 million more Indians with essential AI skills by 2030.

“India’s vibrant youth and tech talent are key to shaping the future of AI. Through the ‘AI for India’ mission, we aim to empower citizens with cutting-edge AI skills, driving innovation, creating jobs, and bridging the digital divide,” said Jayant Chaudhary, Minister of State (Independent Charge), Ministry of Skill Development and Entrepreneurship. “Collaborations with global leaders like Microsoft and similar companies are pivotal in this transformation. By equipping our workforce, especially women and youth, with advanced skills, we are building an AI-ready India, poised for digital leadership and sustainable economic growth.”