Microsoft has officially unveiled its latest cloud region, India South Central, in Hyderabad. This new data centre forms a significant component of the company’s previously declared investment of $20.5 billion aimed at bolstering cloud infrastructure and artificial intelligence in India. The announcement was made during the Microsoft AI Infrastructure Summit held in New Delhi.

The India South Central facility is Microsoft’s fourth cloud region in the country, joining existing centres located in Pune, Chennai, and Mumbai. The firm envisions this new region as a strategic hub not only for India but also for the broader Asian and Global South markets.

Infrastructure and Operational Capabilities

Designed specifically to accommodate advanced AI workloads, the new data centre in Hyderabad incorporates state-of-the-art infrastructure. Microsoft has indicated that all its data centre regions within India are equipped with AI-compatible hardware and high-efficiency cooling systems, which are essential for managing AI operations at scale. This approach reflects their commitment to meeting increasing demands for AI technology across various sectors.

The operational status of the Hyderabad region allows it to provide a diverse range of Azure cloud services from day one. An important feature of this facility is its division into three distinct zones, each equipped with independent power, cooling, and networking resources. This structural design ensures continuity of services, even if one zone encounters technical difficulties.

Moreover, Microsoft has committed to rolling out additional Azure and AI services within this centre, including the anticipated Microsoft Foundry, aimed at further enhancing available offerings.

Market Impact and Development Goals

The establishment of this data centre coincides with a surge in demand for AI infrastructure in India. Puneet Chandok, President of Microsoft India and South Asia, pointed out that India accounts for approximately 20 per cent of the world’s data, yet possesses only about 3 per cent of the global data centre capacity. With new installations like the Hyderabad region coming into operation, Microsoft predicts a substantial increase in India’s data centre capacity, possibly rising from roughly 2 gigawatts (GW) currently to a projected 12-14 GW by 2035.

Furthermore, Microsoft’s commitment to empowering the Indian workforce has expanded through initiatives like Microsoft Elevate India, which has already provided AI skills to more than 10 million individuals. The company aims to equip 20 million people with AI expertise by 2030.

Adhering to guidelines set forth by the Ministry of Electronics and Information Technology (MeitY), the new facility is also constructed to help clients comply with India’s Data Protection and Digital Policy (DPDP), as well as regulations from the Reserve Bank of India (RBI) and the Computer Emergency Response Team India (CERT-In). Notably, this centre employs an innovative cooling method that requires minimal water, thereby mitigating its environmental impact in terms of water consumption.

Future Connectivity and Infrastructure Projects

In addition to the new data centre, Microsoft is involved in the development of a 3,600-kilometre submarine cable system that aims to connect India with Malaysia and Singapore. The expected landing points for this infrastructure are Machilipatnam and South Chennai, with services slated to commence in 2029. This project underscores Microsoft’s broader vision of enhancing connectivity across the region and facilitating growth in digital infrastructure.

The launch of India South Central strengthens Microsoft’s position in the rapidly evolving AI landscape and reflects its ongoing commitment to investing in India’s technological future.

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