Microsoft has launched its fourth cloud region in India, located in Hyderabad, marking the initial rollout of its $17.5 billion commitment.
TL;DR Microsoft has launched its Hyderabad cloud region, featuring three availability zones, zero-water cooling systems, and over 1,000 MW of renewable energy. This marks the first operational milestone of its $17.5 billion commitment to India and adds to its existing regions in Pune, Chennai, and Mumbai, claiming the largest hyperscale footprint in the country.
Microsoft has officially launched its fourth cloud region in India, the India South Central in Hyderabad, with general availability announced on August 6. This facility, comprising three availability zones, is the largest hyperscale region that Microsoft operates in India, and according to the company, it boasts the most extensive hyperscale cloud footprint of any provider in the country. It joins sites in Pune, Chennai, and Mumbai, as well as two data centers operated with Jio. The launch aligns with Microsoft's December 2025 projection that the site would cover an area comparable to that of two Eden Gardens stadiums.
This region marks the first significant capacity achievement in Microsoft's $17.5 billion commitment to India that was announced in December 2025, representing its largest investment in Asia. The four-year initiative, spanning from 2026 to 2029, follows a prior $3 billion commitment made in January 2025, raising total investment pledges in India to $20.5 billion. Early adopters are primarily from regulated sectors, with HDFC Bank intending to use Hyderabad for disaster recovery, and Bajaj Finance, PB Pay, and Adani Digital Lab also involved. Financial services in India face stringent data-residency regulations.
The physical infrastructure is noteworthy, with the cooling system employing air-cooled chillers that require no water, in line with the zero-water design announced by Microsoft in 2024 for its new data center generation. On the power front, Microsoft has been actively developing its infrastructure in India, establishing multi-year power purchase agreements related to over 1,000 MW of new solar, wind, and hybrid energy projects, of which more than 630 MW are already operational. In February, Microsoft revealed that it had matched 100% of its annual global electricity consumption with renewable energy purchases from approximately 40 GW of contracted clean power across 26 countries.
However, it is important to note that while eligible Microsoft Cloud services are now available from Hyderabad, more services will be introduced over time. The activation of a region and the availability of all Azure and Microsoft 365 workloads in it are distinct milestones. According to IDC, India's public cloud spending is projected to reach $45.7 billion by 2030, growing at an annual rate of 22%, with AI spending expected to grow at nearly double that rate. The data center market in India is attracting significant hyperscale investments, and Microsoft is rapidly turning its commitments into tangible results.
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Microsoft has launched its fourth cloud region in India, located in Hyderabad, marking the initial rollout of its $17.5 billion commitment.
Microsoft's South Central India region in Hyderabad is operational with three availability zones, utilizing zero-water cooling, and has secured over 1,000 MW of renewable energy contracts.