**Microsoft to Launch Major Data Centre in Hyderabad by 2026**
Microsoft has announced a significant $3 billion investment plan that includes the launch of its Hyderabad data centre, one of the largest in the region, expected to go live by June 2026. This facility will complement existing data centre hubs in Mumbai, Pune, and Chennai, as well as two Jio-Azure regions in Maharashtra and Gujarat, in collaboration with Reliance Industries. Puneet Chandok, president of Microsoft India and South Asia, emphasized that all data centres are AI-ready, highlighting the company’s commitment to structural investments rather than episodic ones. He indicated that further details on these investments will be shared next week.
Chandok spoke to the media ahead of Microsoft CEO Satya Nadella’s visit to India from December 10-12, during which key announcements regarding AI infrastructure are anticipated. Recently, Google, in partnership with Adani Group and Airtel, announced a $15 billion investment to establish a 1 gigawatt AI data centre in Visakhapatnam, Andhra Pradesh.
When asked about competition, Chandok refrained from commenting directly on rivals but expressed confidence that the rise of AI would not hinder Microsoft’s hiring in India. Currently, Microsoft employs 22,000 AI engineers in the country and continues to seek additional talent. The company dedicates one day each month to upskilling its workforce, with 420 job openings available, 92% of which require AI skills across various roles.
Chandok noted that while some jobs may evolve, the introduction of AI will lead to the replacement of mundane tasks with more value-added roles. He pointed out that new educational methods, such as micro-degrees in AI, are emerging to facilitate this transition. In FY25, Microsoft India reported operating revenue of ₹28,754.77 crore ($3.18 billion) and a net profit of ₹1,245.18 crore ($138 million), with a year-on-year revenue increase of 27% and a net profit growth of 39%. The company continues its long-term partnership with OpenAI, providing generative AI applications through Azure and Copilot.
Chandok highlighted that Microsoft is witnessing substantial, large-scale adoption of its AI services in India, with over 1,000 customers utilizing Microsoft Azure OpenAI, marking a shift from experimental to operational deployments. Notable enterprises such as Apollo Healthcare, the State Bank of India, and Physics Wallah are among those leveraging these advanced AI capabilities.
**FAQ**
**Q: What is the significance of Microsoft’s new data centre in Hyderabad?**
A: The Hyderabad data centre, set to launch by June 2026, is part of Microsoft’s $3 billion investment plan and will enhance the company’s AI-ready infrastructure in India, supporting its growing customer base and AI services.
