Investments

Amazon and Microsoft Pledge More than $52 Bn to Expand AI and Cloud Infrastructure in India

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Microsoft CEO Satya Nadella and India’s Labour Minister Dr. Mansukh. Photo: IBTimes

Amazon and Microsoft announced major new investments in India, committing a combined total of more than $52bn as they race to shape the country’s artificial intelligence and cloud ecosystem.

Amazon said it will invest over $35bn in its Indian operations by 2030, underlining its long-term bet on the fast-growing market. The company said the funds will support cloud infrastructure, AI-driven tools for small businesses and export growth, with Amazon projecting the creation of nearly 3.8 mln jobs. The investment adds to roughly $40bn the group has already spent in India since 2010.

Microsoft, meanwhile, pledged $17.5bn over four years, marking its largest investment in Asia to date. The company plans to focus on expanding cloud capacity and training India’s vast informal workforce, estimated at around 310 mln people, through government-backed employment platforms. Microsoft said it has already trained 5.6 mln people this year, with more than 125,000 securing jobs or launching businesses.

India’s size and digital ambitions have made it a key target for US tech giants. With a population of about 1.4 bn and a rapidly expanding internet user base, the country is emerging as a strategic hub for AI and cloud services. Google has also committed $15bn over five years to develop AI data centres in India, according to Reuters.

The investments come amid intense competition. Amazon is seeking to strengthen its position against local heavyweights such as Flipkart and Reliance Industries, while Microsoft is adapting its cloud services to meet India’s data sovereignty rules by ensuring data is processed domestically.

Both companies say their goal is to democratise access to AI. Analysts note, however, that the long-term prize lies in control of digital infrastructure, from cloud platforms to logistics and employment systems, which could give global tech firms lasting influence over India’s digital economy.

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