Microsoft has launched its fourth cloud region in India, located in Hyderabad, marking the first step toward fulfilling its $17.5 billion investment promise.
Microsoft's Hyderabad cloud region is now operational, featuring three availability zones, utilizing zero-water cooling, and powered by over 1,000 MW of renewable energy. This marks the first tangible capacity delivery related to the $17.5 billion investment commitment in India. The region is now part of a network that includes facilities in Pune, Chennai, and Mumbai, and boasts the largest hyperscale footprint in India.
Launched on August 6, the India South Central cloud region is the most extensive hyperscale site that Microsoft operates in the country. It joins existing locations and two data centers managed with Jio and complements a previously announced commitment from December 2025, which described the site as roughly the size of two Eden Gardens stadiums.
This new development aligns with Microsoft's four-year investment strategy covering from 2026 to 2029, which follows an earlier $3 billion commitment made in January 2025, increasing the total investment in India to $20.5 billion. Initial customers include companies in regulated sectors, such as HDFC Bank, which intends to use the Hyderabad region for disaster recovery, along with Bajaj Finance, PB Pay, and Adani Digital Lab. This is particularly significant as India's data residency laws are most stringent within the financial services sector.
The physical aspects of the build are noteworthy, featuring an innovative cooling system that employs air-cooled chillers that require no water, as part of Microsoft's zero-water design initiative announced in 2024. Additionally, Microsoft's infrastructure development in India has been robust, with multi-year power purchase agreements for over 1,000 MW of new renewable energy projects, of which over 630 MW are already operational. In February, Microsoft reported that it matched 100% of its annual global electricity use with renewable energy purchases based on around 40 GW of contracted clean power across 26 nations.
It's important to note that while eligible Microsoft Cloud services are available from Hyderabad, additional services will be introduced over time. The launch of a region and the availability of all Azure and Microsoft 365 workloads in it are distinct milestones. IDC forecasts that India's public cloud spending could reach $45.7 billion by 2030, with an annual growth rate of 22%, and anticipates that AI investments will grow at nearly double that rate. The data center market in India is experiencing a surge in hyperscale commitments, with Microsoft converting its pledges into reality quicker than most competitors.
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Microsoft has launched its fourth cloud region in India, located in Hyderabad, marking the first step toward fulfilling its $17.5 billion investment promise.
Microsoft's South Central region in India, located in Hyderabad, is now operational with three availability zones, zero-water cooling, and over 1,000 MW of renewable energy contracts.
