Microsoft CEO Satya Nadella met Prime Minister Narendra Modi on Tuesday, where he announced $17.5 billion (Rs 1.5 lakh crore) investment to India’s AI first future. Calling the invest ‘largest ever in Asia’, Nadela said the contribution will help the company to build infrastructure, skills, and sovereign capabilities in the country.
“To support the country’s ambitions, Microsoft is committing US$17.5B—our largest investment ever in Asia—to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI first future,” Nadella wrote in an X post.
Thank you, PM @narendramodi ji, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing US$17.5B—our largest investment ever in Asia—to help build the infrastructure, skills, and sovereign capabilities needed for… pic.twitter.com/NdFEpWzoyZ
— Satya Nadella (@satyanadella) December 9, 2025
He also thanked Prime Minister Modi for what he called an “inspiring conversation” about India’s growing AI opportunity.
‘World is optimistic about India’
Prime Minister Narendra Modi reacted enthusiastically to Nadella’s major AI investment announcement.
Taking to X, he wrote, “When it comes to AI, the world is optimistic about India! Had a very productive discussion with Mr. Satya Nadella. Happy to see India being the place where Microsoft will make its largest-ever investment in Asia. The youth of India will harness this opportunity to innovate and leverage the power of AI for a better planet.”
When it comes to AI, the world is optimistic about India!
— Narendra Modi (@narendramodi) December 9, 2025
Had a very productive discussion with Mr. Satya Nadella. Happy to see India being the place where Microsoft will make its largest-ever investment in Asia.
The youth of India will harness this opportunity to innovate… https://t.co/fMFcGQ8ctK
Microsoft’s plans on AI, cloud infrastructure in India
Nadella’s meeting with PM Modi came days after he said earlier this year that Microsoft will invest $3 billion in India in cloud and artificial intelligence (AI) infrastructure and skilling over the next two years, including the establishment of new data centers.
The company will also help train 10 million people over the next five years with AI skills in the country, according to Indian Express.
‘India rapidly becoming leader in AI innovation’
“India is rapidly becoming a leader in AI innovation, unlocking new opportunity across the country. The investments in infrastructure and skilling we are announcing today reaffirm our commitment to making India AI-first, and will help ensure people and organisations across the country benefit broadly,” Nadella had said at the Bengaluru leg of his Microsoft AI Tour.
Microsoft already has three data center regions in the market, and the fourth ready to go live in 2026. In a blog post, the company said the new investment aims to develop a scalable AI computing ecosystem to meet the growing demands of India’s rapidly expanding AI start-ups and research community.
