Amazon and Microsoft have announced a plan to invest a total of $52.5 billion (£39.4 billion) in India over the coming years.
Amazon will invest $35 billion by 2030 to support AI-driven digital technology, boost exports, and create jobs. This announcement follows Microsoft’s commitment of $17.5 billion to strengthen India’s AI development.
India is becoming a center for AI and cloud technology, attracting many global tech investments. In October, Google said it would invest $15 billion to create an AI data hub. Earlier this week, Intel announced it will work with Tata Electronics in Mumbai, which is part of Tata’s $14 billion plan for semiconductor manufacturing.
Indian Prime Minister Narendra Modi stated, “When it comes to AI, the world is optimistic about India,” in a post on X after meeting Microsoft CEO Satya Nadella on Tuesday.
Amazon’s investment of $35 billion will build on the $40 billion it has already invested in India, establishing the company as “the largest foreign investor” in the country, according to a company statement.
A significant portion of this new investment will be directed toward developing local cloud and AI infrastructure.
HyperScale Cloud Region
Microsoft’s recent commitment follows a $3 billion investment announced by the company earlier this year.
This investment includes the establishment of a new “hyperscale cloud region,” a cluster of data centers, in Hyderabad, southern India, which is set to go live in mid-2026, the company stated.
Data centers are centralized physical facilities that host computer servers, IT infrastructure, and network equipment. They are a crucial part of the AI value chain that India is focusing on, despite concerns regarding water shortages.
Additionally, India will gain access to Microsoft’s “sovereign public cloud,” which provides tools to help organizations manage their data and applications while ensuring that sensitive information remains within the country.
Microsoft is investing $23 billion in AI projects around the world, including Canada, Portugal, and the UAE. This expansion is a way for Microsoft to compete with companies like Amazon and Google.
The company plans to incorporate AI into Indian government platforms to help about 310 million informal workers.
These announcements come as India increases its efforts in semiconductor manufacturing. Both state and private projects aim to build a domestic chip-making industry.
India has a large market for AI, with over a billion internet users and plenty of tech talent. However, it still falls behind leaders like China and the US.
Despite this, India is attracting billions in investments for essential computing technologies like chips. The government’s semiconductor mission offers generous subsidies to companies that create chip-making facilities.
India will also reveal its own AI model in February of next year.
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