Microsoft has expanded its cloud presence in India by launching its fourth cloud region, India South Central, in Hyderabad. The new region is now generally available and is designed to meet the growing demand for cloud computing and artificial intelligence services among businesses across the country.
The Hyderabad cloud region features three Availability Zones, allowing organizations to run eligible Microsoft Cloud services and critical workloads with improved reliability and lower latency. With this launch, Microsoft now operates cloud regions in Pune, Chennai, Mumbai, and Hyderabad.
The expansion is part of Microsoft’s broader investment strategy in India. The company said the Hyderabad launch builds on its previously announced investments of $3 billion in January 2025 and $17.5 billion in December 2025, bringing its total commitment in the country to $20.5 billion.
Puneet Chandok, President of Microsoft India and South Asia, said the Hyderabad datacenter region represents a major step in supporting India’s cloud and AI ambitions and reflects the company’s long-term investment in the country’s digital future.
Several major Indian enterprises have already started using the new cloud region, including Adani Group, Bajaj Finserv, HDFC Bank, and PB Pay. These organizations are expected to use the infrastructure to strengthen business continuity, support mission-critical applications, and scale AI-powered workloads.
Microsoft also highlighted the rapid growth of its cloud business in India. According to the company, Azure has recorded strong double-digit growth over the past two years, helping the platform surpass $100 billion in annual recurring revenue globally for the first time.
The company added that more than 90% of NIFTY 100 companies are now using Microsoft 365 Copilot. Leading IT firms such as Infosys, TCS, Wipro, and LTIMindtree have collectively adopted more than 400,000 Copilot seats, while Microsoft 365 Copilot has exceeded 30 million paid users worldwide.
On the sustainability front, Microsoft said the Hyderabad datacenter uses air-cooled chillers that require no water for cooling. It also noted that it matched all of its global annual electricity consumption with renewable energy in February 2026 and currently supports renewable energy projects in India totaling more than 1 GW, with over 630 MW already operational.
The company reaffirmed its goal of training 20 million people in India in AI skills by 2030. Since January 2025, Microsoft says it has already trained 5.6 million individuals, with more than 125,000 participants securing jobs or launching entrepreneurial ventures through these programs.
Industry research from IDC suggests India’s public cloud services market could reach $45.7 billion by 2030, growing at a 22.2% compound annual rate, while spending on AI technologies is expected to expand at an even faster pace.
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