This article first appeared on GuruFocus.
Microsoft (MSFT, Financials) announced $23 billion in new artificial intelligence investments, concentrating most of the spending in India as it seeks to build one of the world’s largest cloud and AI footprints. CEO Satya Nadella said the company will devote $17.5 billion to India beginning in 2026, expanding an earlier $3 billion plan and marking Microsoft’s largest-ever investment in Asia.
India’s fast-growing digital economy and deep talent pool have drawn strong interest from U.S. tech firms. Google recently pledged $15 billion for an AI-focused data center, while Microsoft’s spending will support major expansions in Hyderabad, Chennai and Pune. A new hyperscale region in Hyderabad, expected to go live in mid-2026, will be the company’s largest in the country.
The investment wave comes as New Delhi and Washington navigate trade tensions, even as both governments court deeper technology cooperation. Microsoft said the spending will help build infrastructure and develop skills for what it called India’s AI-first future, with plans to train 20 million people by 2030.
Earlier Tuesday, Microsoft confirmed a separate C$7.5 billion investment in Canada, part of a larger C$19 billion plan that includes new cloud capacity and partnerships with local AI startups. The company, alongside other major cloud providers, is projected to spend more than $400 billion this year to build the data centers powering generative AI platforms such as Copilot and ChatGPT.
Microsoft’s next update on regional buildouts and capital spending is expected during upcoming earnings disclosures.
