Amazon and Microsoft have unveiled a combined $52.5bn (£39.4bn) investment plan for India, underscoring the country’s growing role as a global hub for AI development and cloud infrastructure. Amazon announced on Wednesday that it would invest $35bn by 2030, one day after Microsoft committed $17.5bn to strengthen India’s AI ecosystem.
Expansion of AI and Cloud Infrastructure
Amazon said its investment will advance AI-driven digitisation, support export growth and contribute to job creation. The company noted it has already invested $40bn in India, describing itself as “the largest foreign investor” in the country. A substantial portion of the new funding will go toward expanding local cloud and AI infrastructure.
Microsoft’s announcement builds on a $3bn investment made earlier this year. The company said it will establish a new hyperscale cloud region in Hyderabad, consisting of clusters of data centres expected to be operational by mid-2026. Data centres form a critical part of the AI value chain by hosting servers, IT infrastructure and network systems, though they have prompted concerns about water usage in areas facing shortages.
India will also gain access to Microsoft’s “sovereign public cloud,” which allows organisations to operate applications and store sensitive data within the country. Microsoft said the investment is part of a broader $23bn AI expansion across markets including Canada, Portugal and the UAE. The company also aims to integrate AI into Indian government platforms to support an estimated 310 million informal workers.
Surge of Global Tech Investment in India
India’s positioning as an emerging AI and cloud hub has accelerated global interest. In October, Google announced a $15bn investment to build an AI data hub, while Intel this week revealed a collaboration with Mumbai-based Tata Electronics as the first major customer in Tata’s $14bn semiconductor manufacturing initiative. India’s semiconductor mission, which offers subsidies to chipmakers, has aimed to attract companies building domestic fabrication infrastructure.
Prime Minister Narendra Modi noted optimism around India’s AI ambitions in a post on X after meeting Microsoft CEO Satya Nadella on Tuesday. India has a large internet user base and significant tech talent but continues to trail behind global AI leaders such as the US and China. The government plans to unveil a sovereign AI model in February next year.
Featured image credits: Flickr
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