Amazon and Microsoft are making massive AI and technology investments in India, signaling confidence in the country’s digital growth. The two tech giants announced a combined $52.5 billion plan aimed at expanding AI capabilities, cloud infrastructure, and generating employment opportunities over the next several years.
Amazon revealed it will invest $35 billion in India by 2030 to promote AI-driven digitisation, enhance export potential, and create jobs. This new funding adds to the $40 billion the company has already invested, positioning Amazon as the largest foreign investor in India. Much of this capital will support the development of local cloud services and AI infrastructure.
Following closely, Microsoft pledged $17.5 billion to strengthen India’s AI ecosystem. The investment includes a new hyperscale cloud region in Hyderabad, set to launch in mid-2026. This cluster of data centers will host essential computing infrastructure, enabling AI advancements while keeping sensitive data within India via Microsoft’s “sovereign public cloud.”
This move is part of Microsoft’s global $23 billion AI expansion, which includes initiatives in Canada, Portugal, and the UAE. The company also plans to integrate AI into Indian government platforms, benefiting approximately 310 million informal workers.
India has emerged as a growing hub for AI and cloud technologies. Prime Minister Narendra Modi highlighted the country’s AI potential during a meeting with Satya Nadella, emphasizing the optimism surrounding global investments. Recent announcements by other tech leaders, such as Google’s $15 billion AI data hub and Intel’s semiconductor collaboration with Tata Electronics, further underscore India’s growing importance in technology and AI.
