Microsoft Designates India South Central as Strategic Hub
Microsoft names India South Central a strategic AI hub for Asia, part of its $20.5B India investment.
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Microsoft has designated India South Central, its new Hyderabad datacenter region, as a strategic hub for Asia and the Global South, the company announced at its AI Infrastructure Summit in New Delhi. Puneet Chandok, President, Microsoft India and South Asia, also said Microsoft’s datacenter regions across India are now AI-enabled, built with AI-capable hardware and high-efficiency cooling systems to host advanced AI workloads.
India South Central, now live, features a three-zone architecture designed for sustained expansion, with additional Azure and AI services, including Microsoft Foundry, planned to roll out in the coming months. The region marks a step in Microsoft’s SUD 20.5 billion commitment to India, turning the investment into operational infrastructure. Enterprises including Adani Group, Bajaj Finserv, HDFC Bank and PB Pay have already signed on to the new region. According to a BCG study cited by Microsoft, India’s datacenter buildout could generate USD140-200 billion in economic output for the country through 2030.
The region expands Microsoft’s Sovereign Public Cloud foundation in India, offering local capacity, data residency options and governance capabilities aligned with MeitY guidelines to help customers address requirements under India’s Digital Personal Data Protection framework and sector-specific expectations from the RBI and CERT-In. As services become available, tools including Azure confidential computing, Customer Lockbox and Azure Key Vault will help customers control data access and encryption keys.
Microsoft is also a consortium partner in the planned India-Southeast Asia (I-2SEA) submarine cable system, a 3,600-kilometre subsea corridor linking India, Malaysia and Singapore with dual landings at Machilipatnam and South Chennai, targeted for service by 2029.
On skilling, Microsoft Elevate India has equipped more than 10 million Indians with AI skills toward a target of 20 million by 2030, with about 25% of learners progressing beyond foundational courses. The company also runs a 600-hour Data Center Academy programme with Young India Skills University in Telangana. India South Central operates on zero-water cooling, and Microsoft’s Elikatta groundwater-recharge programme near Hyderabad has added about 5 million litres of recharge capacity as of June 2026.
“India South Central is our fourth cloud region in the country, built for advanced AI workloads and a strategic hub for Asia and the Global South. It is where our USD 20.5 billion investment becomes operational infrastructure, with leading Indian enterprises already running on it,” said Puneet Chandok, President, Microsoft India and South Asia.
Microsoft has designated India South Central, its new Hyderabad datacenter region, as a strategic hub for Asia and the Global South, the company announced at its AI Infrastructure Summit in New Delhi. Puneet Chandok, President, Microsoft India and South Asia, also said Microsoft’s datacenter regions across India are now AI-enabled, built with AI-capable hardware and high-efficiency cooling systems to host advanced AI workloads.
India South Central, now live, features a three-zone architecture designed for sustained expansion, with additional Azure and AI services, including Microsoft Foundry, planned to roll out in the coming months. The region marks a step in Microsoft’s SUD 20.5 billion commitment to India, turning the investment into operational infrastructure. Enterprises including Adani Group, Bajaj Finserv, HDFC Bank and PB Pay have already signed on to the new region. According to a BCG study cited by Microsoft, India’s datacenter buildout could generate USD140-200 billion in economic output for the country through 2030.
The region expands Microsoft’s Sovereign Public Cloud foundation in India, offering local capacity, data residency options and governance capabilities aligned with MeitY guidelines to help customers address requirements under India’s Digital Personal Data Protection framework and sector-specific expectations from the RBI and CERT-In. As services become available, tools including Azure confidential computing, Customer Lockbox and Azure Key Vault will help customers control data access and encryption keys.
Entrepreneur Staff • Editor
Entrepreneur Staff
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