Microsoft opens its largest India data center hub as AI race heats up

Microsoft opened its largest India data center hub in Hyderabad, expanding its cloud presence in a key growth market as competition for AI infrastructure intensifies. The facility adds to Microsoft’s existing India cloud regions in Pune, Chennai and Mumbai, reinforcing its position as the country’s largest cloud provider. Microsoft has committed about $20.5 billion to expand its India operations and said Azure has delivered double-digit revenue growth in India for the past two years. The move is strategically important because India has over 1 billion internet users and a large pool of tech talent, making it a major battleground for AI and cloud demand. The article also highlights competitive pressure from Alphabet and Amazon, both of which are investing heavily in Indian data-center capacity. Overall, the development is supportive for Microsoft’s long-term cloud and AI growth narrative, though it also signals rising capital intensity in the sector.