Microsoft opened its fourth cloud region in India, and this time Hyderabad is at the center of the move. The new India South Central region joins the already established Microsoft hubs in Pune, Chennai and Mumbai. It also supports the company’s wider investment plans in India, including its earlier USD 20.5 billion commitment.
The timing matters as India’s need for data centers keeps rising. Microsoft India and South Asia President Puneet Chandok said India now creates nearly 20% of the world’s data, while it has only around 3% of global data center capacity. According to him, “Between these two numbers sits the largest opportunity of the decade for India.”
Presently, with the existing infrastructure, India has about 2GW of data center capacity, which the Microsoft India and South Asia President expects to reach 12GW to 14GW by 2035. Microsoft expects more companies and government bodies to move from testing AI to using it at scale. The main challenge, according to Chandok, is building enough infrastructure to support future growth. He mentioned, “The digital scale that we are building requires physical scale, and that is the national imperative for all of us.”
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Hyderabad became a key destination for large technology projects. Its established IT industry gives companies access to skilled workers. The city also has the digital and business support needed for large projects.
Microsoft’s latest move adds to that appeal. As Indian companies use more AI, they will need more computing power and storage. More cloud infrastructure in Hyderabad could help meet some of that demand.
Microsoft’s new cloud region gives Hyderabad another major technology investment. It also comes as India prepares for a much larger need for cloud and AI services. For Hyderabad, the move adds another sign that its role in India’s technology sector is getting bigger.