Microsoft plans to invest $3 billion to expand its artificial intelligence and cloud services in India. The firm, which has been operating in India for Microsoft plans to invest $3 billion to expand its AI and cloud Azure services in India,

Microsoft will spend $3 billion to expand its Azure cloud and artificial intelligence (AI) capacity in India, CEO Satya Nadella said on Tuesday, doubling down on a country with tech expertise and low costs to help turn such investments profitable.

Microsoft plans to spend $3 billion over the next two years to expand its cloud and artificial-intelligence infrastructure in India, the latest in a string of investment pledges by U.S. tech giants amid booming AI computing needs.

Microsoft is one of the biggest spenders, followed closely by Google and AWS, Bloomberg Intelligence said. Its estimate of Microsoft’s capital spending on AI, at $62.4 billion for calendar 2025, is lower than Smith’s claim that the company will invest $80 billion in the fiscal year to June 30, 2025.

The tech giant will funnel more than half of the investments into U.S.-based facilities, Microsoft Vice Chair and President Brad Smith said Friday.

Amid growing investments in India's AI sector, Microsoft has announced plans to invest US$3 billion in the country. This substantial investment aims to enhance AI capabilities and expand the reach of Azure services across India.

The massive sum will go towards building out datacenters for training AI models, as well as deploying and improving global AI and cloud-based applications.