The new Hyderabad cloud region expands Microsoft’s India footprint to four cloud regions, supporting AI, digital transformation and data sovereignty while reinforcing the company’s multi-billion-dollar investment in cloud infrastructure, skilling and enterprise innovation.
Microsoft has officially activated its new cloud region in Hyderabad, expanding its infrastructure footprint in India and enabling organisations to host eligible Microsoft Cloud services and workloads from the city. The launch is aimed at helping enterprises accelerate digital transformation while meeting increasing demand for artificial intelligence (AI), cloud computing and data residency.
With the Hyderabad facility now operational, Microsoft’s cloud presence in India has grown to four regions, joining its existing cloud locations in Pune, Chennai and Mumbai. The new region also becomes part of the company’s global cloud network, which spans more than 500 data centres across over 80 regions in 34 countries.
According to Microsoft, the Hyderabad cloud region has been designed to support AI-driven workloads and modern enterprise applications. It will provide organisations with greater flexibility to upgrade critical systems, develop digital services and deploy AI solutions while benefiting from enterprise-grade security, compliance and governance capabilities. Additional cloud services are expected to be introduced in phases as the region expands.
Strengthening India's AI and cloud ecosystem
Microsoft India and South Asia President Puneet Chandok said the expansion reflects the company’s commitment to supporting India’s AI ambitions by combining scalable infrastructure with trusted security, local data hosting and digital skills. He noted that the initiative is intended to help businesses and public sector organisations unlock greater value from AI while addressing evolving requirements around data sovereignty.
The company’s latest cloud investment comes amid sustained demand for its Azure cloud platform in India, which has recorded double-digit growth over the past two years. Rising enterprise adoption of AI-powered applications, cloud-native services and digital platforms has continued to drive demand for scalable cloud infrastructure across industries.
The development also aligns with the rapid expansion of India’s broader data centre ecosystem. Government data indicates that the country’s installed data centre capacity has increased from 375 megawatts (MW) in 2020 to approximately 1,575 MW, reflecting strong investments by hyperscalers and infrastructure providers to support digital growth.
Part of Microsoft's long-term India investment strategy
The Hyderabad cloud region forms a key part of Microsoft's broader investment roadmap for India. Last year, the company announced plans to invest more than $20 billion to expand cloud infrastructure, AI capabilities, workforce skilling and operational capacity across the country.
As part of that commitment, Microsoft had outlined a $17.5 billion investment programme covering the 2026–2029 period, in addition to an earlier $3 billion commitment. The funding is intended to strengthen hyperscale cloud infrastructure, support AI adoption and build sovereign-ready digital capabilities for enterprises and government organisations.
Microsoft had earlier described the Hyderabad cloud region as its largest hyperscale infrastructure deployment in India, featuring three availability zones designed to improve resilience, availability and business continuity. The company expects the new region to play a central role in supporting India's growing AI ecosystem while enabling organisations to scale innovation through secure and locally hosted cloud services.
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