Microsoft plans to spend $3 billion over the next two years to expand its cloud and artificial-intelligence infrastructure in India, the latest in a string of investment pledges by U.S. tech giants amid booming AI computing needs.

Over half of the investment is reserved for infrastructure. Microsoft President Brad Smith frames AI investment as key to economic growth.

Microsoft, among the top cloud and AI providers in India, operates three datacenter regions in India and plans to make its fourth ready to go live next year, the company said. The $3 billion investment will be deployed to develop a scalable AI computing ecosystem to serve India’s AI startups and research community.

Microsoft has announced plans to allocate approximately $80 billion (around Rs. 6,86,200 crore) in fiscal year 2025 to expand its data centre infrastructure, Reuters reported. This investment aims to support the training of advanced artificial intelligence (AI) models and facilitate the deployment of AI-driven and cloud-based applications,

In the Fiscal Year 2025 ending in June, Microsoft plans investing over $80 billion to create data centres for training

Microsoft is investing $80 billion in 2025 to build AI-focused data centers, with most of the spending in the U.S. Vice Chair Brad Smith said the U.S. leads the global AI race because of private investments and innovation and urged quick action to stay ahead of growing competition from China.