Microsoft CEO Satya Nadella met Prime Minister Narendra Modi on Wednesday evening and announced the US-based technology giant’s largest-ever investment in Asia, over US$17.5 billion (approximately Rs 1.5 lakh crore), aimed at developing Artificial Intelligence (AI) capabilities in India.
“Thank you, PM Narendra Modi Ji, for an inspiring conversation on India’s AI opportunity. To support the country’s ambitions, Microsoft is committing US$17.5 billion, our largest investment ever in Asia, to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI-first future,” Nadella said on X.
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
Prime Minister Narendra Modi took to his social media and 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!
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
— Narendra Modi (@narendramodi) December 9, 2025
A press statement released after the meeting confirmed that the US$17.5 billion investment builds on an earlier commitment of US$3 billion to establish cloud and AI infrastructure in Bengaluru over the next two years. This includes the creation of new data centres and upskilling initiatives, which will collectively give Microsoft the “largest hyperscale presence in India.”
“India stands at a pivotal moment in its AI journey… one defined by impact at scale, determined to lead. As technology becomes a catalyst for inclusive growth and economic transformation, the country is emerging as a frontier AI nation. Against this backdrop… today we are announcing our largest investment in Asia, US$17.5 billion over four years,” the statement said.
This nearly US$20 billion investment over four years underscores India’s importance as a critical market for global software companies racing to build advanced digital infrastructure.
In a related development, Google CEO Sundar Pichai recently spoke to Prime Minister Modi about the US tech giant’s plans to establish its largest AI hub in Visakhapatnam, Andhra Pradesh. Partnering with the Adani Group, Google intends to invest US$15 billion over the next five years in its biggest hub outside the United States.
Amazon has also committed billions of dollars towards building data centres in India, highlighting the country’s growing appeal as a hub for technology and AI innovation.
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