Microsoft Launches Fourth Cloud Region in Hyderabad

Microsoft launched its fourth cloud region in India in Hyderabad, expanding its cloud and artificial intelligence infrastructure as demand for data centre capacity and enterprise AI adoption grows. The new India South Central cloud region joins Microsoft’s existing regions in Pune, Chennai and Mumbai. The launch gives the company its largest hyperscale cloud infrastructure presence in India. The new region is part of Microsoft’s previously announced USD 20.5 billion investment commitment in India. The investment covers cloud capabilities, AI infrastructure, skilling initiatives and operational expansion. Hyderabad Cloud Region Adds Capacity Microsoft India and South Asia President Puneet Chandok said that India is at a key stage in its digital transformation. He pointed to the gap between the amount of data generated in India and the country’s data centre capacity. “20% of the world’s data is being generated by India, but only 3% of the world’s data center capacity sits in our country. Between these two numbers sits the largest opportunity of the decade for India,” Chandok said. India currently has around 2 gigawatts (GW) of data centre capacity. Chandok expects that figure to reach between 12 GW and 14 GW by 2035. The expansion is expected to support businesses, government departments and institutions as they move from AI trials to wider deployment of AI applications. Rising AI Infrastructure Demand Chandok highlighted that the demand for AI services is already strong. He said the key challenge is creating enough infrastructure to support future requirements. “The digital scale that we are building requires physical scale, and that is the national imperative for all of us,” he mentioned. Microsoft’s fourth cloud region adds to its infrastructure footprint at a time when India is preparing for a significant rise in data centre capacity. The Hyderabad facility also strengthens Microsoft’s cloud presence alongside its existing locations in Pune, Chennai and Mumbai. The company’s USD 20.5 billion investment commitment includes efforts to expand AI infrastructure and cloud capabilities while supporting skilling initiatives in the country.