Modi – Satya Meet: Microsoft’s ₹1.5L Crore AI Push in India

Satya Nadella, the CEO of the globally renowned Microsoft tweeted on X (formerly Twitter), thanking Indian PM Narendra Modi for “an inspiring conversation on India’s AI opportunity”. This is in light of the recent meeting between Modi and Nadella, who promised a mega investment of over 17.5 billion USD (~ 1.5 lakh crore INR) towards establishing cloud and AI based infrastructure in Bengaluru over the next two years.

This package involves upskilling and establishment of new data centers, which Microsoft claims would give it the largest hyperscale presence in India. Building upon an earlier investment made by the company of 3 billion USD between 2023-24, which was directed towards the establishment of cloud and AI based infrastructure in Bengaluru over the next two years, this new investment underscores that this is the largest ever investment made in Asia by the software giant.

Nadella is confident of India’s emergence as a “frontier nation” as it currently stands at a pivotal moment in AI and tech development leading to economic growth and transformation. The race of global tech companies increasingly investing their shares in India highlights the nation’s position as a valuable market for gaining profits and a potential platform for building and upgrading the digital infrastructure.

Mega conglomerates like Google, partnering with Adani Group, proposed the establishment of a giant data center and AI base in Andhra Pradesh’s Visakhapatnam, planning to invest over 15 billion USD over the next five years in October; in the same month, Qualcomm’s CEO met Modi discussing about the advancements made by India in AI sectors, innovation hubs and skilling.

Amazon has invested billions in establishing data centers across major cities in India. The credit for bringing in these valuable collaborations is due to the central government’s efforts as well as the state governments too, since they are playing a major role in the development of cutting edge data infrastructure and high tech equipment by attracting large investments across the globe like AP, Telangana, Maharashtra etc. 

These developments showcase a positive trajectory for the nation, which aims to be a developed one by 2047, and is adapting to the wind of changing times fuelled by technological innovation, with AI development being the leader of this change. These investments should not be discarded as merely commercial decisions, but as carrying significant policy implications for data sovereignty, regulatory capacity, and digital governance. With an emphasis on an ethical and human centric AI development model, Modi envisions India’s role as an eventual world leader in terms of technological advancement and innovation.