AI ambition into action: Microsoft brings AI-ready capabilities across its India cloud infrastructure, establishes India South Central region as a strategic hub for Asia and Global South - Source Asia

Tags: AI Cloud Press Releases India South Central, Microsoft’s new Hyderabad datacenter region, brings AI-ready infrastructure and a resilient three-zone architecture designed to scale with demand, as Azure and AI capabilities deepen progressively over time. Microsoft’s India cloud regions provide capabilities aligned with MeitY guidelines to help customers address applicable data protection, cybersecurity, and sector-specific requirements, including India’s DPDP framework and guidance from RBI and CERT-In. High-efficiency mechanical cooling delivers effectively zero water use for cooling, supporting more responsible AI infrastructure. Microsoft equips more than 10 million Indians with AI skills towards its commitment of skilling 20 million people by 2030 As the company with the largest hyperscaler cloud presence in the country, Microsoft’s AI infrastructure is contributing to India’s datacenter economy flywheel, which is estimated to generate $140-200B economic output through 2030, as per a BCG study NEW DELHI, September 21, 2026 — At the Microsoft AI Infrastructure Summit, the company today outlined how it is turning India’s frontier AI ambition into capability at scale. Microsoft announced that India South Central, its new Hyderabad datacenter region, has been designated a strategic hub for Asia and the Global South, reflecting its long-term commitment to capacity expansion, resilience and AI innovation in the region. Puneet Chandok, President, Microsoft India and South Asia, also announced in his keynote address that Microsoft’s datacenter regions across India are now AI-enabled, built with AI-capable hardware, high-efficiency cooling systems and the platform foundation required to host and run advanced AI workloads, bringing frontier AI capability closer to Indian organizations. Puneet Chandok, President, Microsoft India and South Asia, on stage at the Microsoft AI Infrastructure Summit in New Delhi The now-live India South Central datacenter region in Hyderabad features a resilient three-zone architecture designed for sustained expansion, with additional Azure and AI services planned for the region. As supported services become available, organizations will be able to deploy eligible sensitive workloads in India using controls designed to support their security, compliance, and sovereignty requirements. Microsoft’s latest datacenter region in India marks a significant step in its US$20.5 billion commitment to the country, turning that investment into operational infrastructure for India’s cloud and AI future. Leading enterprises and critical infrastructure organizations, such as Adani Group, Bajaj Finserv, HDFC Bank and PB Pay, have already signed up on the new region. A BCG study estimates that the datacenter buildout in India could catalyze wider economic flywheel and generate $140-200B economic output for India through 2030. With India’s largest hyperscale cloud presence in the country, Microsoft’s investments continue to meaningfully contribute to the country’s expanding economic growth. Key insights from the new BCG report ‘Powering India’s AI ambition’. Read more at Powering India’s AI Ambition | BCG Speaking at the event, Shri Jitin Prasada, Hon’ble Minister of State for Commerce and Industry, and Electronics & Information Technology , said, “India’s ambition is to be an AI-first nation. The launch of Microsoft’s India South Central datacenter region strengthens the digital infrastructure needed to support that ambition. As we advance the IndiaAI Mission, investments such as these expand national AI capability, accelerate innovation, and enable developers, enterprises, and public institutions to build and deploy AI with confidence. With its talent, entrepreneurial energy, and digital public infrastructure, India is well-positioned to lead AI adoption at scale and contribute innovations that benefit people in India and around the world.” Puneet Chandok, President, Microsoft India and South Asia , said , “ India heard our commitment. Today, India can see it — built, live and running. India South Central is our fourth cloud region in the country, built for advanced AI workloads and a strategic hub for Asia and the Global South. It is where our $20.5 billion investment becomes operational infrastructure, with leading Indian enterprises already running on it. But compute alone does not make a nation AI-ready. Capability does — the ability to take AI from pilot to production on platforms that are sovereign-ready, secure and sustainable, in a region cooled with effectively zero water. That is why we have already equipped more than 10 million Indians with AI skills, on the way to 20 million by 2030. India has the talent and the ambition. Now it has the infrastructure to build the next generation of Frontier Firms — and we are building alongside it. “ Message from Brad Smith, Vice Chair and President, Microsoft Click here to load media FROM LIVE INFRASTRUCTURE TO REGIONAL CONNECTIVITY India South Central region launches with a broad portfolio of Azure services and is designed to support the full portfolio of Azure and AI services, including Microsoft Foundry, as additional capabilities roll out in the coming months . The ‘strategic hub’ ambition extends beyond serving domestic demand. India brings together hyperscale infrastructure, engineering talent, a fast-growing digital economy and experience building technology for complex, diverse markets. This combination can support customers across South Asia, accelerate innovation for Asia and create solutions relevant to the Global South. Beyond AI-ready datacenters, Microsoft is also investing in the critical digital infrastructure that enables AI at scale. As a consortium partner in the planned India-Southeast Asia (I-2SEA) submarine cable system, Microsoft is supporting the development of a 3,600-kilometre subsea corridor linking India, Malaysia and Singapore. With dual landings in India, at Machilipatnam and South Chennai, the system will strengthen regional connectivity, improve network resilience, and provide the high-capacity foundation needed to support growing AI, cloud and hyperscale demand across India and the region. The cable system is targeted to be ready for service in 2029. BUILDING THE FRONTIER WORKFORCE: MORE THAN 10 MILLION INDIANS EQUIPPED WITH AI SKILLS Beyond investing in infrastructure, Microsoft announced another milestone in its AI commitment to India. Microsoft Elevate India has equipped more than 10 million Indians with AI skills towards its commitment to skilling 20 million people by 2030. About 25 percent of the learners have progressed beyond foundational AI course and gained credentials for additional learning pathways. This progress provides strong momentum to India’s national skilling ambition, set out by Hon’ble Prime Minister Narendra Modi, to build a new generation of frontier professionals ready to participate in and lead the AI economy. Microsoft continues to invest in India’s digital future through its Data Center Academy , which prepares students for careers in the rapidly growing datacenter industry.  This 600-hour industry-aligned skilling program is delivered in collaboration with Young India Skills University (YISU), Government of Telangana. The program equips students with hands-on expertise in critical datacenter operations and infrastructure management. Read more about how Microsoft’s datacenter academies are helping people launch tech careers. GREATER CONTROL FOR SENSITIVE CLOUD AND AI WORKLOADS India South Central region expands Microsoft’s Sovereign Public Cloud foundation in India , giving organizations more options for deploying eligible cloud and AI workloads closer to their data, users, and operations. The region provides local capacity, data residency options, Availability Zones, and governance capabilities designed to help customers address applicable regulatory, security, operational, and sovereignty requirements. Microsoft’s India cloud regions provide capabilities aligned with MeitY guidelines and designed to help customers address applicable requirements under India’s Digital Personal Data Protection (DPDP) framework and sector-specific expectations from authorities, including the RBI and CERT-In. Customers remain responsible for determining which requirements apply to their organizations and workloads. Microsoft approaches digital sovereignty as a workload-based risk decision. Different workloads require different levels of control over data location, confidentiality, encryption keys, operational access, governance, and continuity. As supported services become available in India South Central, capabilities such as Azure confidential computing, Customer Lockbox, and Azure Key Vault can help customers strengthen protection of data in use, control encryption keys and govern Microsoft operational access. For requirements that call for customer-controlled infrastructure, disconnected operations, or specialized local expertise, Microsoft also provides Sovereign Private Cloud and a Sovereign Partner Ecosystem as part of its broader continuum of control. COMMUNITIES AT THE HEART OF RESPONSIBLE INFRASTRUCTURE India South Central region operates on zero water cooling in line with Microsoft’s global commitments to become carbon negative, water positive and zero waste by 2030. Through its Datacenter Community Pledge , Microsoft also works with educational institutions, non-profits and government to support the priorities that matter most locally. In the Hyderabad region, the company works with local partners on groundwater recharge, rainwater harvesting, and watershed resilience. The Elikatta groundwater-recharge program has added ~5 million liters of recharge capacity by June 2026, establishing Elikatta as a scalable water-secure community. Read more about how Microsoft is supporting a water-resilient future around its India South Central region. By investing in people, communities, and local ecosystems, Microsoft aims to ensure its digital infrastructure contributes to long-term resilience, economic opportunity, and sustainable growth for the Hyderabad region. Learn more about Microsoft Cloud services available in India South Central: https://datacenters.microsoft.com/globe/explore?info=region_southcentralindia Top image: Microsoft leaders with Shri Jitin Prasada, Hon’ble Minister of State for Commerce and Industry, and Electronics & Information Technology (to the right of the plaque), and Shri S. Krishnan, Secretary, Ministry of Electronics & IT (to the left of the plaque), at the Microsoft AI Infrastructure Summit in New Delhi, where the company outlined how AI-ready cloud infrastructure, skills and responsible innovation can help turn India’s AI ambition into impact at scale DOWNLOADS 1. Download this note in Hindi Download 2. Download high-res launch image Download 3. Download high-res infographic on ‘What makes India South Central a strategic Azure region’ Download 4. Download high-res infographic on ‘Powering India’s AI ambition’ – insights from the new BCG study Download — Company newsroom — sourced from Microsoft. Matter furnished by the company. Not a Notice Nearby paid placement. This page reprints matter furnished by the company from its official newsroom. Notice Nearby did not write this release. Read the original: https://news.microsoft.com/source/asia/2026/09/21/ai-ambition-into-action-microsoft-brings-ai-ready-capabilities-across-its-india-cloud-infrastructure-establishes-india-south-central-region-as-a-strategic-hub-for-asia-and-global-south