Microsoft designated its new India South Central datacenter region in Hyderabad as a strategic hub for Asia and the Global South on September 21, 2026. This move expands capacity and drives AI innovation in the region. The Hyderabad facility is AI-enabled, featuring AI-capable hardware. It also includes high-efficiency cooling systems designed for effectively zero water use.
This expansion is part of Microsoft's US$20.5 billion investment commitment to India. It provides local organizations with infrastructure to deploy advanced AI workloads. This infrastructure meets data protection and cybersecurity requirements.
Microsoft also highlighted progress in skills development. The company equipped over 10 million people in India with AI skills. It aims to train 20 million by 2030.