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Updated Aug 6, 2026 · 18:25
Technology News Updated Aug 6, 2026

Microsoft Launches Hyderabad Cloud Region to Power India's AI Economy

Microsoft has launched its India South Central cloud region in Hyderabad, Telangana, to support the country's growing AI adoption and enterprise digital transformation. The new region includes three availability zones and brings Microsoft's total cloud regions in India to four, making it the largest hyperscale cloud provider in the country. Early enterprise interest includes Adani Group, Bajaj Finserv, HDFC Bank, and PB Pay, with Microsoft reporting double-digit Azure growth in India over the past two years. The company also reaffirmed its commitment to training 20 million Indians in AI skills by 2030, alongside advanced infrastructure features like zero-water-consumption cooling systems.

Microsoft launches Hyderabad cloud region to power India's AI economy, strengthen enterprise adoption

New Delhi, August 6

Microsoft announced the launch of its India South Central cloud region in Hyderabad, Telangana, to support India's growing artificial intelligence adoption and help businesses scale their digital transformation efforts.

The new cloud region will enable customers to access eligible Microsoft Cloud services and run workloads from Hyderabad, offering improved security, reliability and compliance. With this launch, Microsoft now has four cloud regions in India, giving it the country's largest hyperscale cloud presence.

Built to support AI applications, critical systems and digital services, the India South Central region includes three Availability Zones designed to meet India's regulatory and infrastructure requirements.

Puneet Chandok, President, Microsoft India and South Asia, said the new region would help businesses move faster from AI experimentation to creating long-term value.

"Whether it is a Frontier Firm already running AI at scale or an enterprise taking its first steps, the question we hear most often is: how do we move faster from experimenting with AI to creating durable business value with AI?" Chandok said.

He added that the new region would provide secure infrastructure closer to businesses and data sources, strengthening Microsoft's commitment to India's cloud and AI growth.

Microsoft said the region has already seen strong interest from Indian enterprises, including Adani Group, Bajaj Finserv, HDFC Bank and PB Pay.

The company reported double-digit Azure growth in India over the past two years and expects further momentum as the Hyderabad region becomes fully operational.

The launch comes as businesses across sectors such as technology, financial services and manufacturing increasingly adopt AI and cloud services.

Microsoft said the new facility also includes advanced infrastructure features, including mechanical cooling systems designed for zero water consumption.

The company reiterated its commitment to expanding digital skills in India, aiming to train 20 million Indians in AI skills by 2030.

— ANI

Reader Comments

Priya S

Good to see big tech investing in India's digital infrastructure. But I hope they're also focusing on data localization and ensuring that Indian businesses, especially MSMEs, can actually afford these services. The 20 million AI training target is ambitious, hope it reaches beyond just urban areas.

James A

Impressive scale. Having worked with cloud providers in multiple countries, the Hyderabad region with three Availability Zones will definitely help enterprises meet our compliance needs more efficiently. Strong move by Microsoft to deepen its India presence.

Ananya R

This is exciting for startups like ours in Bangalore. Lower latency + local compliance will make it easier to implement AI solutions without constantly worrying about cross-border data issues. The competition between cloud providers is only going to benefit Indian businesses. 🚀

Vikram M

Good, but lagging behind? China and other countries have been pushing homegrown cloud solutions aggressively. While foreign investment is welcome, we should also be building our own domestic hyperscaler to reduce dependency. Digital sovereignty matters in the long run.

Sarah B

The enterprise adoption numbers look promising — Adani, Bajaj Finserv, HDFC are heavyweights. The focus on training 20 million in AI skills is exactly what India needs to stay competitive in the global tech landscape. Hope to see more local partners getting integrated.

R Ravi K

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