Global tech firm Microsoft launched its new data centre, the India South Central data centre region in Hyderabad, as part of its  $20.5 billion investment commitment to the country. Leading conglomerates like Adani Group, Bajaj Finserv, HDFC Bank and PB Pay have already signed up for the facility. 

The Hyderabad facility marks Microsoft’s fourth data centre in the country. The Bill Gates-founded company said that the India South Central region is particularly designated to be a hub for Asia and the Global South. It added that all its data centres across the country are now AI-enabled, enabling frontier AI capability closer to Indian organisations. 

What all does the Hyderabad facility feature?

The Hyderabad facility brings in a three-zone architecture, combined with Azure and AI services. 

Source: Press Release

The company, citing BCG study estimates, said that data centre buildout could generate $140-200 billion in the country’s economic output by 2030. It added that with India’s growing cloud presence, Microsoft’s investment could contribute significantly to the country. 

Speaking at the event, Jitin Prasada, Minister of State for Commerce and Industry and Electronics & Information Technology, said, “As we advance the IndiaAI Mission, investments such as these expand national AI capability, accelerate innovation, and enable developers, enterprises, and public institutions to build and deploy AI with confidence.” 

He added that the launch of the Hyderabad facility will further strengthen the country’s AI-first ambition. 

Speaking on the same, Puneet Chandok, President, Microsoft India and South Asia, said that Microsoft has already equipped 10 million citizens with AI skills, and aims to take this number to 20 million by 2030. “ But compute alone does not make a nation AI-ready. Capability does — the ability to take AI from pilot to production on platforms that are sovereign-ready, secure and sustainable, in a region cooled with effectively zero water,” he added. 

Microsoft added that the newly launched facility operates on zero water cooling, aligning with its global commitment to become carbon negative and water positive within the coming four years. 

Hyderabad facility features Azure services 

The India South Central region features a range of Azure services and is designed to support the cloud computing platform’s full portfolio and AI services. These include Microsoft Foundry. The facility is built to serve not just Indian but other diverse markets as well, the company added. 

“ This combination can support customers across South Asia, accelerate innovation for Asia and create solutions relevant to the Global South,” Microsoft said in an official statement. 

Expanding beyond AI

The company explained that its partnership with India is not just limited to AI, as the tech firm is also a consortium partner in the planned India-Southeast Asia (I-2SEA) submarine cable system. Further, it is also backing the development of a subsea corridor linking India, Malaysia, and Singapore. 

It noted that these initiatives will support network resilience and provide the requisite foundation needed to support the expanding AI, cloud and hyperscale demand across India. Its cable system is expected to get in service by 2029.