Microsoft's Satya Nadella Announces $17.5 Billion Investment in India

Microsoft Chief Executive Officer Satya Nadella has committed to investing $17.5 billion in India to bolster the country's capabilities in artificial intelligence (AI). This announcement was made during a meeting with Indian Prime Minister Narendra Modi in New Delhi on 9 December 2025.

Nadella expressed his gratitude for the engaging discussion with Prime Minister Modi, highlighting the potential for AI in India. He stated, "To support the country's ambitions, Microsoft is committing $17.5 billion—our largest investment ever in Asia—to help build the infrastructure, skills, and sovereign capabilities needed for India's AI-first future." This investment marks a significant milestone in Microsoft's strategy to expand in Asia, particularly in the rapidly evolving technology landscape of India.

The recent investment is aimed at enhancing the infrastructure necessary for AI development and fostering skill development among the Indian workforce. Nadella noted that Microsoft's focus would include setting up new data centres to support this initiative. This investment comes as India continues to emerge as a critical global player in AI innovation, drawing interest from major technology firms worldwide.

Prime Minister Modi welcomed the investment, describing the meeting with Nadella as "very productive." He stated, "The world is optimistic about India when it comes to AI! Happy to see India being the place where Microsoft will make its largest-ever investment in Asia. The youth of India will harness this opportunity to innovate and leverage the power of AI for a better planet."

This meeting is part of Nadella's four-day visit to India, during which he plans to explore opportunities for Microsoft in cities like Bengaluru and Mumbai. Earlier this year, he announced a $3 billion investment focusing on AI and cloud infrastructure over two years, aiming to train ten million Indians in AI skills by 2030.

In recent months, India has become a competitive battleground for AI development, attracting investments from other tech giants as well. For instance, Google has committed $15 billion to establish a significant AI hub in Andhra Pradesh, which is expected to be one of its largest investments worldwide outside the United States.

The rapid expansion of AI in India is seen as a vital part of its economic development strategy. The Indian government has been proactive in fostering an environment conducive to technological advancements, positioning the country as a key player in the global AI landscape.

Nadella's announcement underscores Microsoft's commitment to India and aligns with the nation's ambition to advance its technological capabilities. As the world increasingly turns to AI for solutions in various sectors, India's youth are expected to play a crucial role in harnessing these technologies for broader societal benefit.