NEW DELHI – Microsoft has made a landmark announcement, committing $17.5 billion to India over the next four years, marking its largest investment in Asia to date. This substantial financial pledge is aimed at bolstering India’s cloud and artificial intelligence infrastructure, a move that underscores the tech giant’s confidence in the country’s digital future.

The announcement was made by Microsoft’s CEO, Satya Nadella, through a post on X following his meeting with Indian Prime Minister Narendra Modi in New Delhi. Nadella emphasized that the investment is intended to aid in constructing the necessary infrastructure, enhancing skills, and developing sovereign capabilities that are vital for India’s AI-driven future.

This move highlights the intensifying global competition among leading technology companies to establish a stronger presence in India, which is rapidly emerging as one of the fastest-growing digital markets worldwide. Microsoft’s investment comes on the heels of Google’s recent declaration to invest $15 billion in India over the next five years. This investment will be used to set up Google’s first AI hub in the country, located in Visakhapatnam, which is poised to become one of the company’s largest facilities globally.

Nadella’s visit to India spans three days, during which he is engaging with policymakers and participating in AI-centric events across the nation. His itinerary includes stops in Bengaluru, known as India’s tech hub, and Mumbai, the financial capital, reflecting the strategic importance of these cities in India’s technological landscape.

In October, Google said it will invest $15 billion in India over the next five years to establish its first AI hub in the country. Located in the southern city of Visakhapatnam, the hub will be one of Google’s largest globally.

Nadella is in India on a three-day trip that includes discussions with policymakers, as well as participation in AI-focused events in the country’s tech hub, Bengaluru, and financial capital, Mumbai.

India has set ambitious targets to become a leading global hub for AI and semiconductor manufacturing. The government has introduced financial incentives aimed at attracting global chipmakers and major technology companies to strengthen the country’s innovation ecosystem, boost jobs and reduce dependence on imported technologies.

“When it comes to AI, the world is optimistic about India,” Modi said on X after meeting with Nadella.

Microsoft’s latest India investment plan tops its earlier announcement this year of investing $3 billion in building cloud and AI infrastructure, as well as new data centers and skilling the workforce over the next two years.

The company, which has operated in India for more than three decades, employs more than 22,000 people in the country and has been expanding cloud and data center capacity to support advanced computing needs.

Microsoft said in a statement that it hopes to scale up its ongoing operations across India. It plans to have its largest hyperscale presence in the country with a new data center going live in mid-2026.