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Microsoft’s Biggest Data Centre Coming To Hyderabad This Year

Data centres are moving fast and quick into India with major IT giants scrambling to tie up with different state governments for incentives to set up their establishments across different metropolitan cities. It is already a known fact that Google has agreed to build a Data Centre in Vishakapatnam and the works have already begun in that direction. 

Now, another IT behemoth Microsoft has chosen Hyderabad to set up their Data Centre as part of its AI push in one of the world’s fastest-growing digital markets, banking on India’s vast internet user base and deep pool of technology talent.

In December last year, Microsoft CEO Satya Nadella met Prime Minister Narendra Modi as of his India AI tour and announced that the company would invest US $17.5 billion in the next four years to expand its presence across the country. He stated that Microsoft will have the largest hyperscale presence in India with new data centre likely to go live by mid-2026. 

Now, Microsoft India and South Asia President Puneet Chandok, announced that they are moving very fast to build the company’s largest data center in Hyderabad and make it operational very soon. He also mentioned that there is a massive, crazy demand in India for Microsoft’s Azure cloud services and their cool new AI helper, the Copilot 365 assistant (which apparently costs $30 a month!). 

This will be their biggest investment in all of Asia, and a lot of that money is going straight into building this Hyderabad data centre.

However, the company did not disclose the exact capacity of the upcoming facility.

The Data Centre in Hyderabad is aimed to support rising demand for AI services among major Indian IT companies, including Infosys, Cognizant and Tata Consultancy Services, each of which reportedly hold around 50,000 licences each.

This post was last modified on 21 May 2026 7:52 am

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