Tech giants Amazon and Microsoft have announced a combined $52.5 billion investment plan for India, marking a massive bet on the country’s future as a global AI hub.
On Wednesday, Amazon committed $35 billion by 2030 to advance AI-driven digitization, export growth, and job creation, building on the $40 billion it has already invested in the country. The pledge came just a day after Microsoft announced $17.5 billion to strengthen India’s AI ecosystem. This surge follows recent multi-billion dollar AI investments from Google and Intel.
“When it comes to AI, the world is optimistic about India,” Prime Minister Narendra Modi posted on X after meeting Microsoft CEO Satya Nadella.
Amazon’s new investment will establish it as “the largest foreign investor” in India, with a key focus on expanding local cloud and AI infrastructure. Microsoft’s commitment includes building a new “hyperscale cloud region”—a critical cluster of data centers—in Hyderabad by mid-2026, and providing access to its “sovereign public cloud” to keep sensitive data within national borders.
These data centers form the backbone of the AI value chain, which India is prioritizing despite concerns over water shortages and energy demands. Microsoft also plans to integrate AI into government platforms to support an estimated 310 million informal workers.
The announcements align with India’s strategic push into semiconductor manufacturing, backed by state subsidies, and the expected unveiling of a sovereign AI model next February. While India trails global leaders like the U.S. and China, its vast internet user base, tech talent, and proactive policy are drawing unprecedented investment, positioning the country at the center of the next phase of the global AI race.
By James Kisoo
