Microsoft launches Hyderabad data centre, takes India cloud regions to four

Global software giant Microsoft on Thursday announced that its latest data centre in Hyderabad has gone live, allowing users in India to run eligible Microsoft Cloud services and workloads from the city. “Built for the demands of the artificial intelligence (AI) era, it gives organisations more local choice to modernise critical systems, build new digital services, and turn AI ambition into measurable business impact through faster decisions, stronger customer outcomes, and new ways of working with enterprise-grade security, compliance, and governance, as services become available in the region over time,” Microsoft said in a press note.

With the general availability of the Hyderabad data centre, Microsoft now has four Cloud regions in India, including Pune, Chennai, and Mumbai. The Hyderabad facility will be part of the company’s global Cloud infrastructure, comprising more than 500 data centres across 80 regions in 34 countries.

“Making India AI-first is about bringing together the scale to support growth, the skills to unlock value, the sovereignty organisations expect, and the security they depend on,” Microsoft India and South Asia President Puneet Chandok said.

The launch of the Hyderabad data centre comes as the company has registered double-digit growth in Azure in India over the past two years.

Overall, the installed capacity of data centres in the country has grown from 375 megawatt (Mw) in 2020 to about 1,575 Mw currently, according to government data.

The Hyderabad data centre is part of the more than $20 billion investment Microsoft announced for India last year.

In December last year, the company said it would invest $17.5 billion in India between 2026 and 2029 to advance the country’s Cloud and AI infrastructure, skilling, and ongoing operations. This is in addition to the $3 billion investment Microsoft had announced earlier.

The new investment will be used to scale Microsoft’s Cloud and AI infrastructure, skilling initiatives, and ongoing operations across India, the company said. It will also help build secure, sovereign-ready hyperscale infrastructure to accelerate AI adoption in the country, Microsoft added.

“At the heart of this effort is the significant progress being made at the India South Central Cloud region, based in Hyderabad, which was set to go live in mid-2026. This will be our largest hyperscale region in India, comprising three availability zones — roughly equivalent in size to two Eden Gardens stadia combined,” Microsoft had said.