Microsoft has formally launched its fourth India cloud region in Hyderabad as part of its $20.5 billion investment commitment to the country's digital and AI infrastructure. The India South Central region, which became generally available on August 6, joins the company's existing regions in Pune, Chennai and Mumbai.
The expansion comes at a time of rapid digital growth in the country.
Microsoft India and South Asia President Puneet Chandok said that the Hyderabad facility uses effectively zero water for cooling, relying on air-cooled chillers instead of traditional water-based systems.
He noted that the country has about 2 GW of data centre capacity, which is set to rise to 6-7 GW by 2035, with over $100 billion in investments already committed.
Chandok further said that India would emerge as an AI infrastructure hub not just for itself but for Asia and the Global South.
In a video message, Microsoft Vice Chair and President Brad Smith said the new region would give organisations in India, and more broadly Asia, more capacity, greater resilience and more choice.
India currently has about 2 gigawatts (GW) of data centre capacity, a figure Chandok expects to increase to between 12 GW and 14 GW by 2035. He said the rapid expansion would be necessary as businesses, government departments and institutions move beyond AI experimentation and begin deploying AI applications at scale.
