Microsoft, among the top cloud and AI providers in India, operates three datacenter regions in India and plans to make its fourth ready to go live next year, the company said. The $3 billion investment will be deployed to develop a scalable AI computing ecosystem to serve India’s AI startups and research community.

Microsoft is planning to invest about $80 billion in fiscal 2025 on developing data centers to train artificial intelligence (AI) models and deploy AI and cloud-based applications, the company said in a blog post on Friday.

Microsoft plans to spend $3 billion over the next two years to expand its cloud and artificial-intelligence infrastructure in India, the latest in a string of investment pledges by U.S. tech giants amid booming AI computing needs.

The tech giant will also train 10 million people in AI skills in India by 2030, Nadella said, addressing a conference attended by startup founders and executives from technology firms here

Microsoft's latest move highlights the company's focus on AI-driven tools like Copilot and autonomous AI agents to empower businesses and developers in India.

Over half of the investment is reserved for infrastructure. Microsoft President Brad Smith frames AI investment as key to economic growth.

Tech giant Microsoft is set to invest approximately $80bn to expand its artificial intelligence (AI)-enabled data centres by fiscal year 2025. These centres will train AI models and deploy AI and cloud-based applications worldwide.

Microsoft is set to invest $80 billion in fiscal 2025 to expand its AI datacenter capabilities, Brad Smith, the company's president and vice chairman wrote in a blog post. Microsoft sees artificial intelligence as the next industrial revolution and wants to participate in it.