Archive · 22 Sep 2026
Microsoft launches Hyderabad cloud region to deepen India AI push
Microsoft has opened a new group of cloud computers in Hyderabad, India.
This is Microsoft’s fourth large cloud region in the country.
The computers are designed to help businesses use artificial intelligence and other online services.
The region has three separate availability zones, which can help services remain reliable.
Banks and other companies, including HDFC Bank and Adani Group, are already testing it.
Microsoft says the facility uses almost no water for cooling.
Customers with data-residency needs can keep their information in India.
Microsoft plans to spend $20.5 billion in India on AI infrastructure, skills and services.
Government officials and Microsoft say India could become an important AI infrastructure hub for Asia and the Global South.
Microsoft formally launched its fourth Indian cloud region, India South Central, in Hyderabad.
The region has three availability zones and supports AI workloads for regulated industries.
Adani Group, Bajaj Finserv, HDFC Bank and PB Pay are early customers conducting trials.
Microsoft’s $20.5 billion India commitment targets AI infrastructure, capacity, skills and customer services.
The facility uses effectively zero water for cooling and offers data-residency options in India.
- Who
- Microsoft, including Microsoft India and South Asia President Puneet Chandok, launched the region; government officials including S Krishnan also commented on the project.
- What
- Microsoft formally launched the India South Central cloud region, its fourth hyperscale cloud region in India, with a focus on AI workloads.
- When
- Monday; the articles do not specify the calendar date. The region became generally available on August 6.
- Where
- Hyderabad, India.
- Why
- To meet growing demand for cloud computing and AI, support regulated industries, expand Microsoft’s Indian infrastructure and provide data-residency options.
- Investment commitment
- Microsoft has committed $20.5 billion to India, focused mainly on AI infrastructure, capacity, skills and customer services.
- Cloud footprint
- The Hyderabad launch brings Microsoft’s hyperscale cloud presence in India to four regions, alongside Pune, Chennai and Mumbai.
- Availability zones
- India South Central has three availability zones with latency between them of less than two milliseconds.
- Early customers
- Adani Group, Bajaj Finserv, HDFC Bank and PB Pay are conducting trials.
- Cooling system
- The Hyderabad facility uses effectively zero water for cooling through air-cooled chillers.
- Capacity projections
- India has about 2 GW of data-centre capacity; Microsoft projects 12–14 GW by 2035, while another article cites a 6–7 GW projection.
- AI training target
- Microsoft aims to train 20 million people in India by 2030, including two million teachers; it says about 10 million have already been trained.
