Modi–Satya Nadella Meet: Microsoft Announces ₹1.5 Lakh Crore AI Investment in India

Microsoft CEO Satya Nadella met Prime Minister Narendra Modi this week, calling their exchange “an inspiring conversation on India’s AI opportunity.” Following the meeting, Nadella announced a massive investment commitment of over USD 17.5 billion (₹1.5 lakh crore) aimed at rapidly expanding Microsoft’s cloud and AI infrastructure in Bengaluru over the next two years.

The package includes major upskilling initiatives and the establishment of new data centers, which Microsoft says will give it the largest hyperscale cloud presence in India. This announcement builds on the company’s earlier investment of USD 3 billion made between 2023 and 2024 toward similar infrastructure development. Nadella noted that this marks Microsoft’s largest-ever investment in Asia, underscoring India’s strategic importance in the global tech landscape.

Nadella expressed strong confidence in India’s potential, describing it as a “frontier nation” at a transformative moment in AI-driven economic growth. His remarks reflect the increasing interest of global technology giants who view India not only as a high-growth market but also as a promising hub for next-generation digital infrastructure.

This trend is visible across the sector. Google, in partnership with the Adani Group, recently announced plans for a massive data center and AI facility in Visakhapatnam with an investment target exceeding USD 15 billion over five years. Qualcomm’s CEO also met Modi in October to discuss India’s expanding AI ecosystem, innovation hubs, and skilling efforts. Amazon, too, continues to deploy billions of dollars into data centers across major Indian cities.

These developments highlight the combined efforts of the central and state governments particularly those of Andhra Pradesh, Telangana, and Maharashtra in building world-class digital infrastructure and attracting large-scale global investments.

As India charts its path toward becoming a developed nation by 2047, these strategic investments signal more than just commercial expansion. They carry far-reaching implications for data sovereignty, regulatory capacity, and digital governance. With a strong emphasis on ethical, human-centric AI, Prime Minister Modi envisions positioning India as a global leader in technological innovation and next-generation digital transformation.

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