Microsoft Opens Largest India Data Centre As AI Race Intensifies
Microsoft has launched its largest data centre in India in Hyderabad and signed up Adani Group and HDFC Bank among its early users, as the company accelerates its push into the country’s rapidly growing artificial intelligence market.
The India South Central facility brings Microsoft’s cloud regions in India to four. It adds to existing centres in Pune, Chennai and Mumbai, strengthening the company’s position as India’s largest cloud-computing provider.
Microsoft has committed about $20.5 billion to expanding its operations in India. The investment reflects its bet on a market with more than 1 billion internet users and one of the world’s largest pools of technology talent.
Hyderabad Data Centre Expands Microsoft’s Cloud Footprint
The new facility increases Microsoft’s data centre presence across India as demand for cloud and AI services grows.
Azure, Microsoft’s cloud-computing business, has recorded double-digit revenue growth in India for the past two years, according to the company.
Microsoft also operates two data centres in the country with Jio, the company owned by Indian billionaire Mukesh Ambani.
The Hyderabad facility is expected to provide infrastructure for businesses seeking to develop and deploy AI applications while keeping data and computing resources closer to their operations.
“Creating value with AI requires trusted infrastructure close to where data lives, teams work and decisions are made,” Microsoft India President Puneet Chandok said.
He described the new facility as a critical part of that foundation.
Microsoft Races Rivals For India’s AI Market
Microsoft is expanding its data centre capacity as major technology rivals also invest heavily in India.
Alphabet and Amazon are putting money into additional data centre capacity across the country. Both companies are seeking to benefit from India’s large potential base of AI users.
The expansion reflects growing expectations that demand for AI services will increase as businesses adopt new applications and computing technologies.
Microsoft’s investment also highlights the importance of local infrastructure in supporting AI services. Data centres provide the computing capacity needed to run cloud services and AI applications at scale.
Data Centre Expansion Faces Environmental Concerns
Not all data centre projects in India have progressed without controversy.
Environmentalists have accused authorities of fast-tracking a planned Google data centre hub without adequately considering potential risks to water supplies and wildlife.
The government has rejected those allegations.
The concerns highlight the wider challenges facing companies as they expand data centre infrastructure to meet rising demand for cloud computing and AI services.
For Microsoft, the launch of the Hyderabad facility adds another major site to its Indian cloud network. At the same time, the company’s growing infrastructure investment positions it to compete with other major technology companies seeking a larger share of India’s AI market.
With inputs from Reuters