Archive · 21 Sep 2026
Government Urges Microsoft to Build Data Centres Near Power
The Indian government wants Microsoft to build some future data centres near places that generate electricity.
This could make it cheaper to run and connect the centres.
Microsoft usually considers locations near coastal cable landing stations, such as Chennai.
Microsoft has opened a new cloud region in Hyderabad.
It is the company’s fourth cloud region in India.
The other regions are in Pune, Chennai and Mumbai.
The government says the new centre will help India develop cloud and artificial intelligence infrastructure.
Officials also hope India can use its large amount of digital data to create new AI applications.
The government urged Microsoft to locate future data centres closer to power-generation facilities.
Electronics and Information Technology Secretary S Krishnan said this could reduce costs for Microsoft and India.
Microsoft launched its fourth Indian cloud region, India South Central, in Hyderabad.
The Hyderabad region joins Microsoft’s existing regions in Pune, Chennai and Mumbai.
The launch is part of Microsoft’s $20.5 billion commitment to India’s digital and AI infrastructure.
- Who
- The Indian government, Electronics and Information Technology Secretary S Krishnan, and Microsoft.
- What
- The government urged Microsoft to locate future data centres near power-generation facilities, while Microsoft launched a new cloud region in Hyderabad.
- When
- The launch and remarks took place on Monday; the Hyderabad region became generally available on August 6.
- Where
- The launch took place in Hyderabad, India; existing Microsoft regions are in Pune, Chennai and Mumbai.
- Why
- Locating data centres near power sources could reduce costs and support India’s digital, cloud and AI infrastructure.
- Company
- Microsoft
- New cloud region
- India South Central in Hyderabad
- Existing Indian regions
- Pune, Chennai and Mumbai
- Investment commitment
- $20.5 billion toward India’s digital and artificial intelligence infrastructure
- Government recommendation
- Locate future data centres closer to power-generation facilities
- Potential benefit
- Lower costs for Microsoft and India
- Official cited
- Electronics and Information Technology Secretary S Krishnan