Microsoft launches Hyderabad Cloud Region to boost India's AI, cloud infra
New Delhi, Aug 6
Microsoft on Thursday announced the general availability of its India South Central cloud region in Hyderabad, strengthening its cloud and artificial intelligence infrastructure in the country.
The new facility expands Microsoft's presence to four cloud regions in India and comes amid rising demand for AI and cloud services from enterprises.
With the addition of the Hyderabad region, Microsoft now operates four cloud regions in India, namely Central India in Pune, South India in Chennai, West India in Mumbai and India South Central in Hyderabad.
The company also runs two datacenters in partnership with Jio, giving it what it describes as the largest hyperscale cloud presence in the country.
The new datacenter region comprises three Availability Zones and has been built with a resilient design aligned with India's regulatory and seismic-zone requirements.
Microsoft said the facility is designed to support mission-critical workloads at scale while providing customers with greater choice to run eligible Microsoft Cloud services and workloads from within the country.
The launch comes at a time when demand for cloud and AI infrastructure is rising rapidly across industries.
Microsoft said Azure has registered strong double-digit growth in India over the past two years, and the company expects momentum to strengthen further with the Hyderabad region now operational.
Several large enterprises, including Adani Group, Bajaj Finserv, HDFC Bank and PB Pay, are among the early-access customers already using the new cloud region.
Microsoft said the Hyderabad facility will play a critical role in helping organizations modernize critical systems, develop new digital services and deploy AI solutions while meeting requirements related to security, compliance and governance.
The expansion builds on Microsoft's significant investments in India. The company had announced a $3 billion investment in January 2025, followed by a $17.5 billion investment commitment in December 2025, aimed at enhancing cloud and AI infrastructure across the country.
Commenting on the launch, Puneet Chandok, President of Microsoft India and South Asia, said trusted digital infrastructure close to where data resides and decisions are made is essential for organizations looking to translate AI experimentation into long-term business value.
— IANS
Reader Comments
The $17.5 billion investment commitment shows Microsoft's serious bet on India. But I hope this translates into actual job creation for local talent, not just infrastructure. We need more skilling programs alongside these datacenters.
As someone who works with Azure globally, this is a welcome move. India's regulatory compliance needs are unique, and having a region specifically designed with seismic-zone alignment shows Microsoft's attention to local requirements. Solid infrastructure can only accelerate the AI adoption curve.
Finally, data sovereignty is getting the attention it deserves! For sectors like BFSI and healthcare, keeping data within India isn't just preference—it's regulation. Adani and HDFC being early customers is a strong signal. But we also need to ensure this doesn't create a monopoly situation. Competition is healthy for pricing.
Impressive scale—four regions plus two Jio partnership datacenters. This is what "Digital India" should look like. The double-digit growth in India is not surprising given the rapid digitization post-COVID. Proud to see Indian enterprises adopting cutting-edge cloud tech.
Good move, but let's not forget about the environmental impact. Datacenters consume massive amounts of electricity and water. I hope Microsoft's sustainability commitments are being followed in this Hyderabad region too. Renewable energy should be a priority, not an afterthought. 🌱
M We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.