Microsoft has formally launched its fourth India cloud region in Hyderabad, expanding the country’s capacity for cloud computing and artificial intelligence services as demand for digital infrastructure accelerates. The India South Central region became generally available on August 6 and joins Microsoft’s existing cloud regions in Pune, Chennai and Mumbai.
The launch forms part of Microsoft’s USD 20.5 billion investment commitment to India’s digital and AI infrastructure. The company has positioned the Hyderabad facility as a way to provide organisations in India and across Asia with additional capacity, resilience and choice in accessing cloud services.
Puneet Chandok, president of Microsoft India and South Asia, said the Hyderabad facility uses effectively zero water for cooling. Instead of traditional water-based cooling systems, the facility relies on air-cooled chillers. The design places water use at the centre of the data centre’s operating model at a time when large digital facilities are becoming an increasingly important part of urban infrastructure.
Microsoft’s expansion comes as India’s data centre industry prepares for substantial growth. Chandok said the country currently has about 2 GW of data centre capacity, which is expected to rise to between 6 GW and 7 GW by 2035. More than USD 100 billion in investments have already been committed to the sector, according to the statement reported by PTI.
The scale-up will increase demand for power, land, fibre connectivity and supporting construction in cities hosting data centres. It also raises operational questions for urban authorities, particularly around electricity supply, cooling systems and the environmental footprint of large technology facilities. Microsoft’s Hyderabad region addresses one part of that challenge through air-cooled systems, although the supplied report does not provide details on the facility’s total power demand, land area or construction cost.
In a video message, Microsoft vice-chair and president Brad Smith said the new region would give organisations in India and more broadly in Asia greater capacity, resilience and choice. The company said the expansion reflects the country’s rapid digital growth and its increasing role in artificial intelligence infrastructure.
The Hyderabad launch also comes as cloud and AI spending is expected to rise sharply. Data from research firm IDC cited in the report forecasts that India’s public cloud services spending will reach USD 45.7 billion by 2030, growing at an annual rate of 22.2 per cent. AI spending is expected to grow at twice that pace, although the report does not specify the projected value of that spending.
Chandok said India would emerge as an AI infrastructure hub not only for its own requirements but also for Asia and the Global South. With the Hyderabad facility now part of Microsoft’s India network, the company’s next phase will involve scaling cloud capacity and supporting organisations as demand for digital and AI services continues to expand.
