Microsoft on Thursday made its Hyderabad cloud region generally available — its largest data center hub in India and the latest salvo in a high-stakes AI infrastructure race. The facility brings Microsoft's cloud regions in India to four, which the company says gives it the country's largest hyperscale cloud presence, alongside two data centers operated in partnership with Jio.
The Hyderabad region comprises three availability zones and lets enterprises run Microsoft Cloud workloads locally while meeting data residency, security and compliance requirements. It forms part of Microsoft's broader India commitment, which now totals $20.5 billion including pledges made in 2025.
Early demand is strong: Adani Group, Bajaj Finance and HDFC Bank are among the customers using the new capacity for business continuity, cloud expansion and AI initiatives. 'The question we hear most often is: how do we move faster from experimenting with AI to creating durable business value with AI?' said Puneet Chandok, President of Microsoft India & South Asia. 'That requires trusted infrastructure close to where data lives.'
The launch lands as enterprise AI adoption surges in India. Research firm IDC expects India's public cloud market to reach $45.7 billion by 2030, growing 22.2% annually — with AI spending projected to expand at nearly twice that pace. Rivals Alphabet and Amazon are pouring billions into Indian data center capacity of their own.
