Microsoft will invest about $3 billion to expand capacity for artificial intelligence and its Azure cloud-computing services in India, CEO Satya Nadella said on Tuesday.

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.

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

Microsoft Corp. plans to spend $3 billion to expand its cloud computing and artificial intelligence capabilities in India, targeting the world’s most populous country to fuel its revenue growth.

MUMBAI: In a major development, Microsoft CEO Satya Nadella said Tuesday his company plans to invest $3 billion in the country's artificial intelligence and cloud infrastructure over

The tech giant has pledged that all data centers serving its cloud by this year will have power purchase agreements for 100 percent low-carbon energy.

Microsoft will spend $3 billion to expand its Azure cloud and artificial intelligence (AI) capacity in India, CEO Satya Nadella said on Tuesday, doubling down on a country with tech expertise and low costs to help turn such investments profitable.

Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025.

The massive sum will go towards building out datacenters for training AI models, as well as deploying and improving global AI and cloud-based applications.