Microsoft has inaugurated its largest Indian data center to date in Hyderabad, securing prominent launch clients including Adani Group and HDFC Bank as tech giants compete for dominance in the country’s booming artificial intelligence market.

The newly established India South Central region increases Microsoft’s footprint to four cloud hubs nationwide—joining existing facilities in Pune, Chennai, and Mumbai—and solidifies its status as India’s leading cloud computing provider. The software giant has committed approximately $20.5 billion toward expanding its domestic operations, capitalizing on India’s vast internet user base of over one billion people and its abundant technical workforce.

Microsoft noted that its Azure cloud platform has delivered double-digit annual revenue growth in India over the past two years. Beyond its wholly owned infrastructure, the firm also operates two co-branded data centers in partnership with Reliance Jio. Puneet Chandok, President of Microsoft India, emphasized that generating value through AI requires localized, trusted infrastructure situated near enterprise data and decision-makers.

The expansion comes as major competitors, including Alphabet and Amazon, direct substantial capital into Indian data center infrastructure to target the expanding AI market. However, rapid sector expansion has encountered local friction; environmental groups have criticized government approvals for a planned Google data center hub over concerns regarding regional water resources and wildlife impact—claims that local authorities deny.

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