This initiative represents the company's largest single expansion in the country to date.
The investment is part of a broader trend among U.S. technology companies targeting India, a nation with over 1.4 billion people and affordable internet access, as a significant growth market.
In addition to infrastructure development, Microsoft aims to train 10 million people in AI skills in India by 2030.
This commitment builds upon a previous announcement to provide AI skilling opportunities to 2 million individuals in the country by 2025, focusing on training in smaller cities and rural areas.
During his visit to India, Microsoft CEO Satya Nadella met with Prime Minister Narendra Modi to discuss technology, innovation, and AI, as well as Microsoft's ambitious expansion and investment plans in the country.
This substantial investment aligns with Microsoft's global efforts to enhance its AI infrastructure and data-center network, with significant investments planned for the United States and other regions.
The company recently unveiled plans to invest about $80 billion in fiscal 2025, focusing on developing data centers to train AI models and deploy AI and cloud-based applications.
This expansion in India underscores the country's growing importance as a hub for technology and innovation, attracting significant investments from major tech companies worldwide.